Exploring the hedonic value of ambient water quality: A local watershed-based study

Non-point source water pollution of local watersheds can result from various sources but is tied most closely to runoff from impervious surfaces associated with development activities such as roadways, parking lots and large commercial structures. This research investigates the value of ambient water quality as measured by data from twenty-two monitoring stations located throughout a local watershed in Maryland; the St. Mary's River watershed. A hedonic property value model is used to investigate the marginal implicit values of the following water quality variables: total suspended solids and dissolved inorganic nitrogen. The econometric results indicate the marginal implicit prices associated with a one milligram per liter change in total suspended solids and dissolved inorganic nitrogen, are $− 1086 and $− 17,642, respectively.