What are Households Willing to Pay for Better Tap Water Quality ? A Cross-Country Valuation Study
AbstractUsing a unique cross-section sample from 10 OECD countries, we estimate willingness to pay for better quality of tap water. On the pooled sample, households are only willing to pay 7.5% of the median annual water bill to improve the quality of tap water. The highest relative willingness to pay for better tap water quality was found in the countries with the highest percentage of respondents being unsatisfied with tap water quality because of health concerns. The median willingness to pay in Mexico, Korea and Italy was estimated at 10.1%, 6.4% and 8.8% of the median water bill. The marginal willingness to pay increased with income, education, environmental concern, trust in information from government, and specific concerns with water quality.
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Date of creation: Jun 2010
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Contingent valuation; tobit model; water quality; willingness to pay.;
Other versions of this item:
- Olivier Beaumais & Anne Briand & Katrin Millock & Céline Nauges, 2010. "What are Households Willing to Pay for Better Tap Water Quality ? A Cross-Country Valuation Study," Documents de travail du Centre d'Economie de la Sorbonne 10051, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-17 (All new papers)
- NEP-ENV-2010-07-17 (Environmental Economics)
- NEP-RES-2010-07-17 (Resource Economics)
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