Nonpoint source (NPS) pollution has been identified by the US Environmental Protection Agency (EPA) as “the nation’s largest water quality problem”. Urban development, septic systems, and agricultural operations have been identified as the major sources of diffuse pollution in surface and ground water bodies. In recent decades, urban and agricultural Best Management Practices (BMP) have been developed in several states to address agricultural water quality and water use impacts, including the reduction of nutrient loads to help meet water quality standards. Compliance with BMPs is associated with some costs to local governments, homeowners, and agricultural operations, but the improvements in water quality associated with BMP adoption are expected to yield significant benefits to society in the form of improved recreational opportunities, navigation, flood control, and ecosystem health. The development of sound policies and decision making processes require balancing the costs of BMP adoption to the agricultural operations with the social benefits to be derived from the improved water quality. In this paper we develop a benefits transfer model to provide estimates of the economic benefits of properly implemented and effective Best Management Practices (BMP) throughout the state of Florida. These benefit estimates can be used in a cost-benefit framework to determine the optimal level of BMP adoption throughout the state of Florida and provide a framework for other regions to estimate the potential benefits of BMP-mediated water quality improvements.

Encouraging water use efficiency and water conservation is one of the primary goals of water utility companies nationwide. This study estimates price elasticity of residential water demand to measure the responsiveness of water use to price changes, particularly for high water users. Household-level water use data for high residential water users from Central Florida were analysed using 3-stage least square (3SLS). Estimated price elasticity ranges between −0.07 and −0.14. This price elasticity estimate is below most of the estimates reported in the literature (in absolute value). The results imply that for price strategies to be effective in managing water demand of high residential water users, a significant price increase would be needed. Overall, this study highlights the importance of designing water conservation policies tailored to specific groups of customers, and the importance of using these strategies effectively and fairly for different customer groups.

The tax burden on alcoholic beverages has been rising remarkably in Turkey. This policy has significantly increased tax revenue in Turkish Lira, but it has not generated more tax revenues in terms of U.S. dollars since 2013. This study estimates price and income elasticities for select alcoholic beverages using demand models and simulates the impact of changing tax policies on demand in Turkey. Results show that the cumulative effect of increasing prices will eventually decrease total tax revenue. Simulations suggest that the government should periodically reassess its tax policy to prevent bootleg drinking which results in deadly incidents and hospitalizations.