Valuing Ecosystem Services and Downstream Water Quality Improvement in the US Corn Belt

We develop a choice experiment (CE) to estimate the benefits of nutrient reductions in the US Corn Belt. The study area covers Illinois, Indiana, and Iowa, the three states that contribute the largest amount of nutrients to the Gulf of Mexico and whose nutrient reductions are vital to achieving targets to reduce the hypoxic dead zone in the Gulf. We find that the public places large values on various local ecosystem services, including aquatic biodiversity, aesthetics of increased farm landscape diversity associated with conservation practices, and water-based recreational activities. Moreover, the results indicate that upstream residents have a strong preference for water quality far downstream in the Gulf of Mexico as characterized by reducing the size of the dead zone. Our analysis of observed taste heterogeneity indicates that public preferences vary depending on familiarity with nutrient pollution issues, users versus non-users of local ecosystem services, and different age groups. Our findings inform policies to improve water quality in the Gulf of Mexico and local water bodies in the US Corn Belt.