Estimating the Value of Water Quality

This paper presents the results of an environmental valuation study designed to estimate the value that local residents and visitors are willing to pay to preserve the current level of water quality in Clear Lake, a spring-fed glacial lake in north-central Iowa. We estimate willingness to pay using both revealed preference and stated preference techniques. When using revealed preference techniques, we compare the number of times respondents plan to visit the lake given its current condition with the number of times they would plan to visit if the lake’s water quality were allowed to deteriorate. When using stated preference techniques, we present respondents with a hypothetical ballot initiative offering improved water quality and resulting higher taxes