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The Economic Damages of Groundwater Contamination in Small Rural Communities: An Application to Nitrates
Author(s) -
Walker David R.,
Hoehn John P.
Publication year - 1990
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/12.1.47
Subject(s) - damages , groundwater , contamination , groundwater contamination , environmental science , rural community , nitrate , economic surplus , net income , natural resource economics , water resource management , economics , business , socioeconomics , ecology , aquifer , market economy , geotechnical engineering , finance , political science , welfare , law , biology , engineering
Procedures are developed for estimating the economic damages imposed on small rural communities when groundwater becomes contaminated. Net economic damages are the sum of producer and consumer surplus. In the case of nitrate contamination, annual damages for communities typical of rural Michigan range from $40 to $330 per household. Damage levels within this range depend on nitrate level, average household income, community size, climatic characteristics, and the selected treatment alternative.