Scioto Analysis releases cost-benefit analysis of Ohio water quality program

Scioto Analysis released a cost-benefit analysis analyzing the effectiveness of the H2Ohio water quality program this morning.

Analysts found that under its current expansion to ten new counties, the H2Ohio voluntary nutrient management program could provide net social benefits exceeding $2 million. Assuming reductions in phosphorus runoff remain high, expanding the voluntary nutrient management program to the entire state could generate nearly $13 million in net social benefits. 

Economic benefits of improving Ohio’s water quality include increased property values, increased access to recreation, and decreased costs associated with water treatment.

“We found that the H2Ohio program has been successful in reducing nutrient load in a cost-effective manner,” said analyst Michael Hartnett. “Assuming farmers across the state apply nutrients in similar ways and that reductions would be comparable, offering the same subsidy to farmers in every county could provide millions of dollars worth of benefits to Ohioans.”

Due to nutrient runoff from agricultural practices and industrial waste, Ohioans on average incur higher costs from water quality problems than 46 other states.

“The average Ohioan incurs over $200 a year in costs from low quality water in the form of lower property values, decreased access to recreation, and higher costs for water treatment,” said Scioto Analysis Principal Rob Moore. “Programs like nutrient management can reduce fertilizer runoff and improve the water of Ohio’s rivers and lakes, which will lead to health, environmental, and economic gains for Ohio.”

This study is the most recent cost-benefit analysis conducted by Scioto Analysis. Previous cost-benefit analyses include research on municipal tree planting, reductions of carbon emissions, and Covid-19 school closures.