The value of water quality for coastal recreation in New England, USA

Nathaniel Merrill, Marisa Mazzotta, Kate Mulvaney, Joshua Sawyer, Julia Twichell, Sarina Atkinson, Darryl Keith and Laura Erban

Agricultural and Resource Economics Review, 2024, vol. 53, issue 3, 492-514

Abstract: Water recreation is valuable to people, and its value can be affected by changes in water quality. This paper presents the results of a revealed preference survey to elicit coastal New England, USA, residents’ values for water recreation and water quality. We combined the survey responses with a comprehensive data set of coastal attributes, including in-water and remotely sensed water quality metrics. Using a travel cost model framework, we found water clarity and the bacterial conditions of coastal waters to be practical water quality inputs to economic analysis, available at appropriate scales, and meaningful to people and their behavior. Changes in clarity and bacterial conditions affected trip values, with a $4.5 change for a meter in clarity in Secchi depth and $0.08 for a one-unit bacteria change in colony-forming units per 100 ml. We demonstrate the large potential value of improving water quality through welfare analysis scenarios for Narragansett Bay, Rhode Island, and Cape Cod, Massachusetts, USA. The paper discusses lessons for improving the policy relevance and applicability of water quality valuation studies through improved water quality data collection, combined with the application of scalable analysis tools for valuation.

Date: 2024
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