International Review of Environmental and Resource Economics > Vol 5 > Issue 3

Monetary Valuation with Impact Pathway Analysis: Benefits of Reducing Nitrate Leaching in European Catchments

Mikael Skou Andersen, Department of Policy Analysis, National Environmental Research Institute, Aarhus University, Denmark, msa@dmu.dk Morten Søes Hansen, Department of Policy Analysis, National Environmental Research Institute, Aarhus University, Denmark, Jacob Carstensen, Department of Marine Ecology, National Environmental Research Institute, Aarhus University, Denmark, Brian Kronvang, Department of Freshwater Ecology, National Environmental Research Institute, Aarhus University, Denmark, Hans Estrup Andersen, Department of Freshwater Ecology, National Environmental Research Institute, Aarhus University, Denmark, Hans Thodsen, Department of Freshwater Ecology, National Environmental Research Institute, Aarhus University, Denmark,
 
Suggested Citation
Mikael Skou Andersen, Morten Søes Hansen, Jacob Carstensen, Brian Kronvang, Hans Estrup Andersen and Hans Thodsen (2011), "Monetary Valuation with Impact Pathway Analysis: Benefits of Reducing Nitrate Leaching in European Catchments", International Review of Environmental and Resource Economics: Vol. 5: No. 3, pp 199-244. http://dx.doi.org/10.1561/101.00000042

Published: 28 Aug 2011
© 2011 M. S. Andersen et al.
 
Subjects
Environmental Economics
 
Keywords
Q51Q53Q58Q59
Impact pathwayNitrogenNitrateAgricultureBenefitsMarginal external costsWater qualitySecchi depthHealth costsWater supply
 

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In this article:
1 Introduction
2 The Impact Pathway Methodology
3 Investigation of Mortality and Morbidity Effects
4 Investigation of Secchi Depth and House Price Effects
5 Data Investigation with Nitrogen Modelling Framework and Scenarios
6 Dose–response Functions Derived from Modelling Results
7 Results of Monetary Quantification
8 Conclusions
References

Abstract

Integrated assessment frameworks which can account comprehensively for the benefits related to water quality improvements have not yet been established. The main challenge is to link economic valuation with hydrological data in an appropriate way. We here explore the so-called 'impact pathway approach' as a novel analytical method in the area of water management. It can identify site- and catchment-specific benefits associated with management measures by linking economic and hydrological data through consecutive modelling stages, allowing for monetization of specific end point effects. This bottom-up methodology generates different results for different catchments. We explore damages of nitrate pollution in six European catchments within a framework that addresses surface water quality as well as water as a healthy resource for abstraction of drinking water. It is a first attempt with this method to address diffuse agricultural pollution, focusing on priority pathways.

DOI:10.1561/101.00000042