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Estimating the Benefits of Groundwater Contamination Control

Abstract In this paper, a conceptual model for estimating option price for groundwater quality protection is developed, and the effects of subjective demand and supply uncertainty and other variables on option price are examined. A contingent valuation study to measure option price for groundwater quality protection was conducted in southwestern Georgia. Valuation results suggest that the monetary benefits to citizens of protecting groundwater supplies from agricultural chemical contamination are quite large.