Valuing Drinking Water Provision as an Ecosystem Service in the Neuse River Basin
Publication: Journal of Water Resources Planning and Management
Volume 136, Issue 4
Abstract
The valuation of ecosystem services such as drinking water provision is of growing national and international interest. The cost of drinking water provision is directly linked to the quality of its raw water input, which is itself affected by upstream land use patterns. This analysis employs the benefit transfer method to quantify the economic benefits of water quality improvements for drinking water production in the Neuse River Basin in North Carolina. Two benefit transfer approaches, value transfer and function transfer, are implemented by combining the results of four previously published studies with data collected from eight Neuse Basin water treatment plants. The mean net present value of the cost reduction estimates for the entire Neuse Basin ranged from $2.7 million to $16.6 million for a 30% improvement in water quality over a 30-year period. The value-transfer approach tended to produce larger expected benefits than the function-transfer approach, but both approaches produced similar results despite the differences in their methodologies, time frames, study sites, and assumptions.
Get full access to this article
View all available purchase options and get full access to this article.
References
Dearmont, D., McCarl, B. A., and Tolman, D. A. (1998). “Costs of water treatment due to diminished water quality: A case study in Texas.” Water Resour. Res., 34, 849–853.
Desvousges, W., Johnson, F. R., and Banzaf, H. S. (1998). Environmental policy analysis with limited information: Principles and applications of the transfer method, W. E. Oates and H. Folmer, eds., Edward Elgar Publishing, Cheltenham, U.K.
Forster, L., Bardos, C. P., and Southgate, D. D. (1987). “Soil erosion and water treatment costs.” J. Soil Water Conserv., 42, 349–352.
Gianessi, L. P., and Peskin, H. M. (1981). “Analysis of national water pollution control policies. 2: Agricultural sediment.” Water Resour. Res., 17, 9–27.
Holmes, T. P. (1988). “The offsite impact of soil erosion on the water treatment industry.” Land Econ., 64, 356–366.
Jenkins, W. A. (2007). “Economic valuation of water quality services: The natural capital project internship.” MS thesis, Univ. of Wisconsin-Madison, Madison, Wis.
Korfmacher, K. (1996). “Changes in land use and water quality in the Yadkin River Basin, NC 1951-1990: A time-series/GIS analysis.” Ph.D. dissertation, Duke Univ., Durham, N.C.
Kramer, R. A. (2007). “Economic valuation of ecosystem services.” Chapter 11 in Sage Handbook on Environment and Society, J. Pretty, et al., eds., Sage Publications, New York.
Magara, Y., and Kunikane, S. (1986). “Cost analysis of the adverse effect of algal growth in waterbodies on drinking water supply.” Ecol. Modell., 31, 303–313.
Millennium Ecosystem Assessment. (2005). Ecosystems and human well-being: Synthesis, W. V. Reid, ed., Island Press, Washington, D.C.
Murray, C., and Forster, L. (2001). “A study of pesticide use, farming practices, and community drinking water treatment costs in the Maumee and Great Lakes Basins.” Rep. Series AEDE-RP-0013-01, Agricultural, Environmental, and Development Economics, Ohio State Univ., Columbia, Ohio.
National Research Council (NRC). (2005). Valuing ecosystem services: Toward better environmental decision-making, National Academies Press, Washington, D.C.
North Carolina Dept. of Environment and Natural Resources (NCDENR) Div. of Water Resources (DWR). (2001). “NC water supply plan – Neuse River Basin summary.” ⟨http://www.ncwater.org/Reports_and_Publications/swsp/swsp_jan2001/swsp_j01.php⟩ (Aug. 15, 2007).
North Carolina Div. of Water Quality. (2002). “Basinwide planning program: 2002 Neuse River basinwide water quality plan.” ⟨http://h2o.enr.state.nc.us/basinwide/Neuse/2002/plan.htm⟩. (Aug. 15, 2007).
Pearce, D. W., Atkinson, G., and Mourato, S. (2006). “Cost-benefit analysis and the environment: recent developments.” Organization for economic co-operation and development, Paris.
Richter, D. D., Korfmacher, K., and Nau, R. (1995). “Decreases in Yadkin River Basin sedimentation: Statistical and geographic tine-trend analyses, 1951–1990.” WRRI Project No. 70123, Univ. of North Carolina.
Rosenberger, R. S., and Loomis, J. B. (2003). “Benefit transfer.” A primer in nonmarket valuation, P. A. Champ, K. J. Boyle, and T. C. Brown, eds., Kluwer Academic, Dordrecht, The Netherlands, 445–482.
U.S. EPA. (1999). “Guidance manual for compliance with the interim enhanced surface water treatment rule: Turbidity provisions.” EPA-815-R-99-010, Washington, D.C., ⟨http://www.epa.gov/safewater/mdbp/mdbptg.html⟩ (Aug. 15, 2007).
U.S. EPA. (2007). “Envirofacts webpage—Safe drinking water information system (SDWIS).” ⟨http://oaspub.epa.gov/enviro/sdw_form_v2.create_page?state_abbr=NC⟩ (Aug. 15, 2007).
Information & Authors
Information
Published In
Copyright
© 2010 ASCE.
History
Received: Aug 3, 2008
Accepted: Nov 4, 2009
Published online: Nov 6, 2009
Published in print: Jul 2010
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.