ECONOMIC ANALYSIS OF ENVIRONMENTAL REGULATIONS: APPLICATION OF THE RANDOM UTILITY MODEL TO RECREATIONAL BENEFIT ASSESSMENT FOR THE MP&M EFFLUENT GUIDELINE

The present study focuses on a state-wide case study to evaluate recreational benefits from forthcoming effluent limitation guidelines for the Metal Products and Machinery Industry. The study combines water quality modeling and a random utility model to assess how changes in water quality from the regulation will affect consumer valuation of water resources. Based on preliminary results, the MP&M regulation has the potential to generate substantial recreational benefits in Ohio.