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 approach~s 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.