The public provision of improvements in water quality is an activity endangered by the complexities involved in the accounting of benefits. The lack of markets and observed prices in water-related recreational activity has necessitated the use of surrogate prices in benefit assessment. Moreover, a formal regime (i.e., the Principles and Standards for Water Quality) articulates the assessment procedure. Unfortunately, the regime still contains ambiguities, inconsistencies and slippage sufficient to raise potential controversy over any estimate of benefits from water quality improvements. The purpose of the volume is to address some of the ambiguities and inconsistencies and, in so doing, provide a more comprehensive, credible approach to the valuation of benefits from water quality improvements. Substantial progress is made in improving valuation techniques by linking the fundamental concepts of the 'travel cost' model with cutting-edge advances in the labor supply, welfare, and econometrics literature.

See also Volume 1, PB90-134651 and Volume 3, PB90-134677. Sponsored by Environmental Protection Agency, Washington, DC. Office of Policy, Planning and Evaluation. EPA/230/10-89/069. Oct. 1989.