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What are Households Willing to Pay for Better Tap Water Quality ? A Cross-Country Valuation Study

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  • Olivier Beaumais

    ()
    (CARE - Centre d'analyse et de recherche en économie - Université de Rouen : EA2260)

  • Anne Briand

    ()
    (CARE - Centre d'analyse et de recherche en économie - Université de Rouen : EA2260)

  • Katrin Millock

    ()
    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Céline Nauges

    ()
    (LERNA-INRA - Toulouse School of Economics)

Abstract

Using 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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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00497453.

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Date of creation: Jun 2010
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Handle: RePEc:hal:cesptp:halshs-00497453

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Keywords: Contingent valuation; tobit model; water quality; willingness to pay.;

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