ABSTRACT
Chen, W.; Zhu, X., and Shan W., 2019. Financial loss auditing model of coastal pollution in China: Based on comparative analysis. In: Yu, T.-s. (ed.), Environmental Sustainability: Water Resources Integrated Management and the Development of Coastal Environments. Journal of Coastal Research, Special Issue No. 96, pp. 42–49. Coconut Creek (Florida), ISSN 0749-0208.
The main aim of the present study is to compare different econometric models used to estimate the loss due to water pollution. The comparison is intended to find an optimal model of evaluating the financial loss of coastal pollution in China. To this end, the advantages and disadvantages of each approach were reviewed. Additionally, the main sectors in coastal areas in China most affected by water pollution are investigated. After conducting secondary research, three main econometric models, namely, concentration-loss curve model, empirical model, and analytical model, are included in the comparison. Among the three, analytical model is noted as the optimal model to estimate financial loss due to coastal pollution. The main advantage of the analytical model is that it considers not only the direct financial loss from pollution such as loss of fisheries revenue, but also indirect losses such as costs for seeking alternative sources of clean water.
