The Economic Damages of Groundwater Contamination in Small Rural Communities: An Application to Nitrates

David R. Walker and John Hoehn ()

Review of Agricultural Economics, 1990, vol. 12, issue 1, 47-56

Abstract: 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.

Date: 1990
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