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Can Rural Communities Comply with the New Arsenic Standard for Drinking Water?

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  • Cho, Yongsung
  • Konishi, Yoshifumi
  • Easter, K. William

Abstract

Our primary concern in this paper is to determine to what extent small communities have difficulty meeting the new stricter 2001 standard for arsenic levels in their drinking water. To do this we survey water users in rural Minnesota communities that had arsenic levels in their water supply exceeding 10 μg/L during 2001-2006. Our survey results show that after obtaining complete information concerning the arsenic levels in their drinking water consumers with relatively low levels of arsenic were willing to pay $8-9 annually, while those with high levels of arsenic are willing to pay $15-17 annually. We also found that consumer’s willingness to pay (WTP) didn’t vary by community size. Thus, we conclude that compared to compliance costs ($58-327 per capita annually) small rural communities were likely to find it difficult to cover the cost of compliance through increased water charges. Since many of the communities have to cover these costs of compliance by raising water charges, we ask the basic question: are there better treatment options for these rural communities that will lower the cost to consumers? One option might be to encourage individual householders to use household water treatment devices for communities serving fewer than 500 people. The devices could be made available by the local entity supplying the community’s water possibly at a subsidized rate along with complete information about the arsenic level in the water supply.

Suggested Citation

  • Cho, Yongsung & Konishi, Yoshifumi & Easter, K. William, 2007. "Can Rural Communities Comply with the New Arsenic Standard for Drinking Water?," Staff Papers 7353, University of Minnesota, Department of Applied Economics.
  • Handle: RePEc:ags:umaesp:7353
    DOI: 10.22004/ag.econ.7353
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    References listed on IDEAS

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    1. Kim, Hong Jin & Cho, Yongsung, 2002. "Estimating Willingness To Pay For Reduced Copper Contamination In Southwestern Minnesota," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    2. Alberini Anna, 1995. "Efficiency vs Bias of Willingness-to-Pay Estimates: Bivariate and Interval-Data Models," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 169-180, September.
    3. Joseph Cooper & John Loomis, 1992. "Sensitivity of Willingness-to-Pay Estimates to Bid Design in Dichotomous Choice Contingent Valuation Models," Land Economics, University of Wisconsin Press, vol. 68(2), pages 211-224.
    4. David Maddison & Rosa Catala-Luque & David Pearce, 2005. "Valuing the Arsenic Contamination of Groundwater in Bangladesh," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(4), pages 459-476, August.
    5. Morales, Knashawn H. & Ibrahim, Joseph G. & Chen, Chien-Jen & Ryan, Louise M., 2006. "Bayesian Model Averaging With Applications to Benchmark Dose Estimation for Arsenic in Drinking Water," Journal of the American Statistical Association, American Statistical Association, vol. 101, pages 9-17, March.
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    7. Haab, Timothy C., 1998. "Estimation Using Contingent Valuation Data from a "Dichotomous Choice with Follow-Up" Questionnaire: A Comment," Journal of Environmental Economics and Management, Elsevier, vol. 35(2), pages 190-194, March.
    8. Cameron Trudy Ann & Quiggin John, 1994. "Estimation Using Contingent Valuation Data from a Dichotomous Choice with Follow-Up Questionnaire," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 218-234, November.
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    10. Benson, Marnee & Walker, Mark & Shaw, W. Douglass, 2006. "Arsenic Consumption and Health Risk Perceptions in a Rural Western U.S. Area," Pre-Prints 23963, Texas A&M University, Department of Agricultural Economics.
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    Cited by:

    1. Konishi, Yoshifumi & Adachi, Kenji, 2011. "A framework for estimating willingness-to-pay to avoid endogenous environmental risks," Resource and Energy Economics, Elsevier, vol. 33(1), pages 130-154, January.

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    Community/Rural/Urban Development; Resource /Energy Economics and Policy;

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