Omitted downstream attributes and the benefits of nutrient reductions: Implications for choice experiments

Shr, Yau-Huo (Jimmy) and Wendong Zhang

Ecological Economics, 2024, vol. 222, issue C

Abstract: Discrete choice experiments have been used extensively to value environmental quality; however, some important attributes are often omitted due to design challenges. In the case of quantifying the values of water quality improvement programs that bring transboundary impacts, existing studies predominantly focus solely on local benefits. Using a statewide survey of Iowa residents, we provide one of the first estimates of willingness-to-pay for both local and downstream water quality improvements-Gulf of Mexico hypoxic zone reduction-stemming from nutrient reductions. Using a split-sample design, we find that excluding hypoxic zone reduction as an attribute significantly reduces the total economic value of nutrient reduction programs. Moreover, we find evidence showing that such exclusion, in line with the theoretical prediction, only changes the preferences of respondents who are aware of the transboundary impacts of nutrient reductions. Conversely, our results also show that providing information about the downstream water quality benefits of nutrient reductions increases support for water quality improvement plans among local residents who are unaware of the connection between local and downstream water quality.

Keywords: Agricultural water pollution; Harmful algal blooms; Gulf of Mexico Hypoxia; Non-market valuation; Choice experiment (search for similar items in EconPapers)
JEL-codes: Q15 Q51 Q53 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:222:y:2024:i:c:s0921800924001150

DOI: 10.1016/j.ecolecon.2024.108218

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