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U.S. Department of Energy
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An experiment in contingent valuation: Willingness to pay for stormwater management. [Homeowners in Baltimore County]

Thesis/Dissertation ·
OSTI ID:7261320

The contingent valuation (CV) method is a technique used frequently in benefit-cost analysis to estimate the economic value of non-market goods such as environmental quality. In CV, surveys are used to ask people about their willingness to pay for a good in a hypothetical market situation. In this application, homeowners in Baltimore County were asked about their willingness to pay (WTP) for programs to control pollutants in urban stormwater runoff designed to achieve, respectively, 4% and 1% reductions in nutrient loadings to the Chesapeake Bay. The main variation comprised alternate descriptions of the payment vehicle. Tests show that the mean WTP by means of property taxes does not differ significantly from mean WTP via user charges. This result was somewhat surprising because of other evidence that the respondents believe strongly that user charges are fairer than property taxes. A best estimate of the benefits to homeowners in Baltimore County of controlling nutrient loads for urban stormwater is from $1.2 to $4.2 million annually, depending on the reduction objective.

Research Organization:
Johns Hopkins Univ., Baltimore, MD (United States)
OSTI ID:
7261320
Country of Publication:
United States
Language:
English