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Abstract

In this paper we review the valuation methodologies that are capable of providing estimates of economic benefits for safe drinking water quality. The most commonly used are the averting behavior and contingent valuation methods. Reviews of the applied valuation literature reveals a wide range of willingness to pay estimates for protection of drinking water quality. We provide a brief assessment of this literature, including a discussion of the validity of the studies and the potential for transferring these estimates for use in policy analysis. In general, benefits transfer is feasible but questions remain regarding the accuracy of these transfers. Comparative research with revealed and stated preference approaches with benefit transfer applications is needed.

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