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Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala

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  • Leiva, Benjamin
  • Van Houtven, George
  • Vásquez, William F.
  • Nájera, Andrea

Abstract

Water service interruptions often impose considerable costs on water users, and lead more households to invest in in-home water storage infrastructure. Studying the value households assign to continuous water supply may help design more effective policies. Using a unique primary dataset from Guatemala City (n = 567), we estimate hedonic models of rental prices to derive marginal values of fewer water service interruptions and in-home water storage infrastructure. Results indicate that, on average, rental prices decrease by 0.7% with each day of water service interruptions and increase by 10% for housing units with storage infrastructure relative to those without it.

Suggested Citation

  • Leiva, Benjamin & Van Houtven, George & Vásquez, William F. & Nájera, Andrea, 2023. "Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala," Utilities Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000383
    DOI: 10.1016/j.jup.2023.101526
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    References listed on IDEAS

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