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Willingness to Pay for Potable Water in the Southeastern Turkey: An Application of both Stated and Revealed Preferences Valuation Method

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  • Bilgic, Abdulbaki
  • Eren, Gunes
  • Florkowski, Wojciech J.
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    Abstract

    We estimate both averting behavior and stated preferences about water quality improvements in the southeastern Anatolian region using reduced form equations. The model reveals that income, education, perception about water features, household living conditions, regional variables are only statistically significant in both the RP and SP data models. The WTP estimate was around 6.43 New Turkish Liras. And also simulation analysis show that increasing income and education foster the willingness-to-pay for treating water, while an increase in bid prices and perception reduce the WTP.

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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas with number 6755.

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    Date of creation: 2008
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    Handle: RePEc:ags:saeaed:6755

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    Keywords: Research Methods/ Statistical Methods; Resource /Energy Economics and Policy;

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    1. Charles W. Abdalla & Brian A. Roach & Donald J. Epp, 1992. "Valuing Environmental Quality Changes Using Averting Expenditures: An Application to Groundwater Contamination," Land Economics, University of Wisconsin Press, vol. 68(2), pages 163-169.
    2. Diansheng Dong & Harry M. Kaiser, 2005. "Coupon Redemption and Its Effect on Household Cheese Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 689-702.
    3. Vella, F., 1989. "A Simple Estimator For Simultaneous Models With Censored Endogenous Regressors," RCER Working Papers 199, University of Rochester - Center for Economic Research (RCER).
    4. Trudy Ann Cameron, 1992. "Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods," Land Economics, University of Wisconsin Press, vol. 68(3), pages 302-317.
    5. Bryan J. Hubbell & Jeffrey L. Jordan, 2000. "Joint Production and Averting Expenditure Measures of Willingness to Pay: Do Water Expenditures Really Measure Avoidance Costs?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 427-437.
    6. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
    7. Diansheng Dong & Brian W. Gould & Harry M. Kaiser, 2004. "Food Demand in Mexico: An Application of the Amemiya-Tobin Approach to the Estimation of a Censored Food System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1094-1107.
    8. Gourieroux, Christian & Monfort, Alain, 1981. "On the Problem of Missing Data in Linear Models," Review of Economic Studies, Wiley Blackwell, vol. 48(4), pages 579-86, October.
    9. Rosado, Marcia A. & Cunha-E-S , Maria A. & Ducla-Soares, Maria M. & Nunes, Luis C., 2006. "Combining averting behavior and contingent valuation data: an application to drinking water treatment in Brazil," Environment and Development Economics, Cambridge University Press, vol. 11(06), pages 729-746, December.
    10. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
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