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Estimating the Benefits of Groundwater Contamination Control

Published online by Cambridge University Press:  28 April 2015

Henglun Sun ,
John C. Bergstrom  and
Jeffrey H. Dorfman
Henglun Sun
Affiliation:
Department of Agricultural and Applied Economics at theUniversity of Georgia, Athens, Georgia
John C. Bergstrom
Affiliation:
Department of Agricultural and Applied Economics at theUniversity of Georgia, Athens, Georgia
Jeffrey H. Dorfman
Affiliation:
Department of Agricultural and Applied Economics at theUniversity of Georgia, Athens, Georgia
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Abstract

In this paper, a conceptual model for estimating option price for groundwater quality protection is developed, and the effects of subjective demand and supply uncertainty and other variables on option price are examined. A contingent valuation study to measure option price for groundwater quality protection was conducted in southwestern Georgia. Valuation results suggest that the monetary benefits to citizens of protecting groundwater supplies from agricultural chemical contamination are quite large.

Keywords

option pricecontingent valuationuncertaintygroundwater contamination
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 24 , Issue 2 , December 1992 , pp. 63 - 71
Copyright
Copyright © Southern Agricultural Economics Association 1992

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