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Demand for environmental quality information and household response: Evidence from well-water arsenic testing

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  • Barnwal, Prabhat
  • van Geen, Alexander
  • von der Goltz, Jan
  • Singh, Chander Kumar

Abstract

Access to information about environmental quality may facilitate low-cost preventive measures that protect human health. In this paper, we study the demand for information about environmental quality and the behavioral response to the information provided. With a field experiment conducted in Bihar (India), we estimate the price sensitivity of demand for diagnostic testing of drinking water wells for arsenic of natural origin – a serious threat to the health of tens of millions of villagers across South and Southeast Asia. Demand is substantial but sensitive to price; uptake falls from 68% to 31% of households over our price range (Rs. 10 to Rs. 50). We further assess how households respond to information regarding the contamination level in their wells. About one-third of households with unsafe wells switch to a safer water source. Finally, we demonstrate that households that received adverse test outcomes are more likely to selectively forget test results, and proactively remove evidence of their wells' arsenic status.

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  • Barnwal, Prabhat & van Geen, Alexander & von der Goltz, Jan & Singh, Chander Kumar, 2017. "Demand for environmental quality information and household response: Evidence from well-water arsenic testing," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 160-192.
    • Handle: RePEc:eee:jeeman:v:86:y:2017:i:c:p:160-192
    DOI: 10.1016/j.jeem.2017.08.002
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    More about this item

    Keywords

    Information; Environmental quality; Willingness to pay; Arsenic; Ground water;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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