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Household Willingness to Pay for Micropollutant Removal in Domestic Wastewater: A Choice Experiment Study

Author

Listed:
  • Tina Rambonilaza
  • Thao Pham
  • Jeanne Dachary-Bernard

Abstract

The combination of end-of-pipe solutions and information campaigns aiming to change behavior can help reduce the concentration of emerging chemical contaminants in domestic waste water and be cost-effective from the societal perspective.?A choice experiment study was applied to investigate the preferences of the inhabitants of Bordeaux metropolitan area and quantify their willingness to pay (WTP) for implementing such policy scenario.?As expected, the estimation of mixed Logit models in WTP-space confirms the presence of observed and unobserved heterogeneity in choice behavior.?However, there is strong evidence that advanced technology treatment upgrading is more highly valued than environmental information-oriented programs.?Furthermore, our results indicate that considerable welfare gains may be achieved by not delaying public investment decision. JEL Codes: C25, Q51, Q25.

Suggested Citation

  • Tina Rambonilaza & Thao Pham & Jeanne Dachary-Bernard, 2019. "Household Willingness to Pay for Micropollutant Removal in Domestic Wastewater: A Choice Experiment Study," Revue économique, Presses de Sciences-Po, vol. 70(5), pages 695-715.
    • Handle: RePEc:cai:recosp:reco_705_0695
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    More about this item

    Keywords

    non-market valuation; willingness to pay space; mixed Logit; surface water protection;
    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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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