Valuing Changes in Aquatic Biodiversity and Recreation with a Nationwide Survey
Paper Number: 2026-01
Document Date: 1/2026
Author(s): Chris Moore, Bryan Parthum, Matt Massey, Stephen Newbold, and David Smith
JEL Classification: H41, Q28, Q51
Keywords: Clean Water Act, stated preference, willingness to pay, discrete choice experiment, preference heterogeneity, water pollution, recreation, biodiversity
Abstract: The existing body of literature on the total economic benefits from surface water quality improvements is robust and provides valuable information for benefit cost analysis of Clean Water Act regulations. However, there are some important elements of benefit transfer that are best informed by study designs that are uncommon or absent from relevant valuation studies. In this paper, we present the results of a national stated preference survey that was designed to collect data on those elements. The policy scenarios presented in the repeated dichotomous choice questions describe improvements to local and distant aquatic resources, providing data that will inform decisions on the extent of market and distance decay in benefit transfer studies. The attributes in the choice scenarios capture distinct sources of value that may respond differently to new water quality standards, providing a more general benefits function than one that relies on a single composite index. Lastly, we demonstrate the importance of capturing preference heterogeneity and correlation among individual preferences when estimating willingness to pay and how it is impacted by the spatial features of surface water quality improvements.
This paper is part of the Environmental Economics Working Paper Series.
Valuing Changes in Aquatic Biodiversity and Recreation with a Nationwide Survey (pdf)