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Evaluating the welfare effects of improved water quality using the choice experiment method

Author

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  • Abou-Ali, Hala

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Carlsson, Fredrik

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

This paper analyzes the welfare effects of improved health status through increased water quality using a choice experiment. The survey was administered to a random sample of households in metropolitan Cairo, Egypt. We apply a random parameter logit model in the analysis and illustrate the richness of information that can be obtained from this type of model by estimating individual level willingness to pay(WTP). We find a significant WTP for improved health status, both for short-run and long-run health effects. However, the estimated WTP is fairly low compared with the costs of a program that would achieve these improvements.

Suggested Citation

  • Abou-Ali, Hala & Carlsson, Fredrik, 2004. "Evaluating the welfare effects of improved water quality using the choice experiment method," Working Papers in Economics 131, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0131
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    File URL: http://hdl.handle.net/2077/2786
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    References listed on IDEAS

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    Cited by:

    1. Che Ibrahim, Nur Syuhada & Kamaludin, Mahirah & Shaari, Nur Fatihah, 2019. "A Discrete Choice Experiment in Estimate Public Willingness to Pay for Attributes of Water Services in Terengganu, Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 213-225.
    2. Ekin Birol & Katia Karousakis & Phoebe Koundouri, 2006. "Using economic valuation techniques to inform water resources management: A survey and critical appraisal of available techniques and an application," DEOS Working Papers 0607, Athens University of Economics and Business.
    3. Deborah Ellen Lee & Stephen Gerald Hosking & Mario Du Preez, 2015. "Managing Some Motorised Recreational Boating Challenges in South African Estuaries: A Case Study at the Kromme River Estuary," South African Journal of Economics, Economic Society of South Africa, vol. 83(2), pages 286-302, June.
    4. Ekin Birol & Phoebe Koundouri & Yiannis Kountouris, 2008. "Using Economic Valuation Techniques to Inform Water Resources Management in the Southern European, Mediterranean and Developing Countries: A Survey and Critical Appraisal of Available Techniques," DEOS Working Papers 0806, Athens University of Economics and Business.
    5. Jagoda Adamus, 2023. "How Much Are Public Spaces Worth? Non-Market Valuation Methods in Valuing Public Spaces," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 66-89.
    6. Mullen, Jeffrey D. & Calhoun, Kayla & Colson, Gregory & Kriesel, Warren, 2015. "Effects of Uncertainty on Support for Water Quality Improvement Programs," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205419, Agricultural and Applied Economics Association.
    7. Diafas, Iason & Barkmann, Jan & Mburu, John, 2017. "Measurement of Bequest Value Using a Non-monetary Payment in a Choice Experiment—The Case of Improving Forest Ecosystem Services for the Benefit of Local Communities in Rural Kenya," Ecological Economics, Elsevier, vol. 140(C), pages 157-165.
    8. Noor-E-Sabiha & Sanzidur Rahman, 2018. "Environment-Smart Agriculture and Mapping of Interactions among Environmental Factors at the Farm Level: A Directed Graph Approach," Sustainability, MDPI, vol. 10(5), pages 1-17, May.

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    More about this item

    Keywords

    Choice experiment; Health; Water quality; Willingness to pay;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I10 - Health, Education, and Welfare - - Health - - - General
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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