Valuation of groundwater quality using a contingent valuation-damage function approach

Using contingent valuation, this paper estimates a damage function for nitr ate (NO3-N) exposures based on actual water test results of individual well s. Damages, as measured by willingness to pay for protecting individual wel l supplies within a 10 mg/L NO3-N health standard, are estimated to be a co ncave function of nitrate exposure levels, rising rapidly at low to moderat e exposures and then leveling off. It is argued that future groundwater con tingent valuation research should be based on objective data such as nitrat e levels and census demographics in order to provide more useful informatio n for groundwater managers and policy makers.