Valuing Water Quality Using Benefit Transfer Methods

Authors

• Robert Johnston, Clark UniversityFollow
• Klaus Moeltner, Virginia Tech
• Stephen C. Newbold, University of Wyoming
• Dennis Guignet, Appalachian State University

Document Type

Article

Abstract

This article summarizes methods, prospects, and methodological questions for water quality benefit transfer. Benefit transfer is the use of welfare estimates from settings where original valuation research has been conducted to predict similar estimates for other settings, allowing quantification of benefits and costs when original valuation studies are infeasible. Water quality has been among the most researched areas of benefit transfer, in part due to requirements for benefit-cost analysis within policies and programs that affect surface and ground water. The article begins with a review of benefit transfer methods and characteristics of water quality that challenge transfer validity. We then explore alternative approaches for meta-regression modeling and value prediction to support these transfers, focusing on emerging methods that may afford greater flexibility than traditional parametric approaches and enable gains in transfer accuracy, while maintaining desirable theoretical properties. The article concludes with a discussion of unresolved questions and research needs. Copyright © 2026 by the author(s).

Publication Title

Annual Review of Resource Economics

Publication Date

2026

Volume

18

Issue

1

First Page

317

Last Page

339

ISSN

1941-1340

DOI

10.1146/annurev-resource-120524-034224

Keywords

accuracy, benefit-cost analysis, meta-analysis, nonmarket valuation, regulatory impact analysis, reliability, validity

Repository Citation

Johnston, Robert; Moeltner, Klaus; Newbold, Stephen C.; and Guignet, Dennis, "Valuing Water Quality Using Benefit Transfer Methods" (2026). Economics. 252.
https://commons.clarku.edu/faculty_economics/252

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Copyright Conditions

Johnston, R. J., Moeltner, K., Newbold, S. C., & Guignet, D. (2026). Valuing Water Quality Using Benefit Transfer Methods. Annual Review of Resource Economics, 18.
https://doi.org/10.1146/annurev-resource-120524-034224