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

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Author Info

  • Olivier Beaumais

    ()
    (CARE - Université de Rouen)

  • Anne Briand

    ()
    (CARE - Université de Rouen)

  • Katrin Millock

    ()
    (Centre d'Economie de la Sorbonne - Paris School of Economics)

  • 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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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2010/10051.pdf
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Bibliographic Info

Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 10051.

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Length: 38 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:mse:cesdoc:10051

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

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