Abstract
Cost-benefit analyses have largely failed to demonstrate a positive benefit to cost ratio for programs designed to improve and protect water quality in the United States and European Union. At the same time, research from outside economics suggests that water quality ranks among the most urgent environmental concerns and highlights deep social and cultural connections to clean water. Exploring alternative explanations for this apparent water value paradox is essential to informing contemporary rulemaking and regulatory analyses, such as the Clean Water Act and the debated Waters of the United States (WOTUS) rule. I review contemporary advances in mainstream environmental economics relevant to the value of clean water, frontiers that have not yet been integrated into mainstream valuation methods, and pluralistic approaches from sociology, history, and moral philosophy that offer policy-relevant insights but do not fit neatly in cost-benefit frameworks of valuation. The review concludes with recommendations for improved water quality planning and policy in pursuit of a more comprehensive and pluralistic understanding of the value of clean water.
Original language | English (US) |
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Pages (from-to) | 235-258 |
Number of pages | 24 |
Journal | Annual Review of Resource Economics |
Volume | 12 |
DOIs | |
State | Published - Oct 6 2020 |
Bibliographical note
Funding Information:Steve Polasky, Terin Mayer, and Kelly Meza Prado were instrumental in scoping the manuscript and developing the core arguments. Terin Mayer reviewed literature on behavioral and institutional economics, and Kelly Meza Prado reviewed literature on cultural and nonmaterial benefits. Special thanks to Hillary Waters and Daniel Hernandez for reviewing early drafts and to Rachel Hauber and Lindsey Krause for fact checking and reference formatting. This research was supported by the Environment and Natural Resources Trust Fund and the Legislative-Citizen Commission on Minnesota Resources.
Publisher Copyright:
Copyright © 2020 by Annual Reviews. All rights reserved
Keywords
- Cost-benefit assessment
- Ecosystem services
- Nonmarket valuation
- Policy analysis
- Public goods
- Water quality