Estimating Water Quality Benefits: Theoretical and Methodological Issues

Knowledge of the benefits and costs to water users is required for a complete assessment of policies to create incentives for water quality improving changes in agricultural production. A number of benefit estimation methods are required to handle the varying nature of water quality effects. This report reviews practical approaches and theoretical foundations for estimating the economic value of changes in water quality to recreation, navigation, reservoirs, municipal water treatment and use, and roadside drainage ditches.