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Valuing the Benefits of Coastal Water Quality Improvements Using Contingent and Real Behaviour

Nick Hanley, David Bell and Begona Alvarez-Farizo

Environmental & Resource Economics, 2003, vol. 24, issue 3, 273-285

Abstract: Recent moves in the European Union have beenmade towards a toughening of legislation onbathing water quality. This has focussedpolicy-makers thoughts on the welfare benefitsresulting from such improvements, especiallygiven their cost. Our paper uses a combinedstated and revealed preference approach tovalue coastal water quality improvements,focussing on an area of Scotland which hasconsistently failed to meet standards under theBathing Waters Directive. We combine data onreal behaviour with data on contingentbehaviour using a random effects negativebinomial panel model. This allows us to predictboth the change in participation (trips) shouldwater quality be improved, and the welfareincrease per trip. Our model includes allowancefor the existence of substitute sites, and forchanges in recreational behaviour during abeach visit. Copyright Kluwer Academic Publishers 2003

Keywords: bathing water quality; combined stated-revealed preference models; contingent behaviour; panel data; sewage pollution (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (76)

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DOI: 10.1023/A:1022904706306

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