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Climate change and the willingness to pay to reduce ecological and health risks from wastewater flooding in urban centers and the environment

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  • Veronesi, Marcella
  • Chawla, Fabienne
  • Maurer, Max
  • Lienert, Judit

Abstract

Climate change scenarios predict an increase of extreme rain events, which will increase the risk of wastewater flooding and of missing legal water quality targets. This study elicits the willingness to pay to reduce ecological and health risks from combined sewer overflows (CSOs) in rivers and lakes, and wastewater flooding of residential and commercial zones under the uncertainty of climate change. We implement a discrete choice experiment on a large representative sample of the Swiss population. We find that about 71% of the respondents are willing to pay a higher annual local tax to reduce the risk of CSOs in rivers and lakes. Swiss households strongly value the protection of water bodies, and mostly, the avoidance of high ecological risks and health risks for children related to CSOs in rivers and lakes. Our findings also show that climate change perception has a significant effect on the willingness to pay to reduce these risks. These results are important to support policy makers' decisions on how to deal with emerging risks of climate change in the water sector and where to set priorities.

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  • Veronesi, Marcella & Chawla, Fabienne & Maurer, Max & Lienert, Judit, 2014. "Climate change and the willingness to pay to reduce ecological and health risks from wastewater flooding in urban centers and the environment," Ecological Economics, Elsevier, vol. 98(C), pages 1-10.
  • Handle: RePEc:eee:ecolec:v:98:y:2014:i:c:p:1-10
    DOI: 10.1016/j.ecolecon.2013.12.005
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    Cited by:

    1. Jones, Nikoleta & Clark, Julian R.A. & Malesios, Chrisovaladis, 2015. "Social capital and willingness-to-pay for coastal defences in south-east England," Ecological Economics, Elsevier, vol. 119(C), pages 74-82.
    2. Lienert, Judit & Duygan, Mert & Zheng, Jun, 2016. "Preference stability over time with multiple elicitation methods to support wastewater infrastructure decision-making," European Journal of Operational Research, Elsevier, vol. 253(3), pages 746-760.
    3. repec:gam:jsusta:v:8:y:2016:i:1:p:44:d:61714 is not listed on IDEAS
    4. Felix Haifeng Liao & Frank M. Wilhelm & Mark Solomon, 2016. "The Effects of Ambient Water Quality and Eurasian Watermilfoil on Lakefront Property Values in the Coeur d’Alene Area of Northern Idaho, USA," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-12, January.
    5. Dan S. Rickman, 2014. "Assessing Regional Quality of Life: A Call for Action in Regional Science," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 1-12, Spring.
    6. Fanus A. Aregay & Minjuan Zhao & Xiaoping Li & Xianli Xia & Haibin Chen, 2016. "The Local Residents’ Concerns about Environmental Issues in Northwest China," Sustainability, MDPI, Open Access Journal, vol. 8(3), pages 1-12, March.
    7. Canales, Elizabeth & Bergtold, Jason S. & Williams, Jeffery & Peterson, Jeffrey, 2015. "Estimating farmers’ risk attitudes and risk premiums for the adoption of conservation practices under different contractual arrangements: A stated choice experiment," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205640, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    8. Dienes, Christian, 2015. "Actions and intentions to pay for climate change mitigation: Environmental concern and the role of economic factors," Ecological Economics, Elsevier, vol. 109(C), pages 122-129.
    9. Torres, Cati & Faccioli, Michela & Riera Font, Antoni, 2017. "Waiting or acting now? The effect on willingness-to-pay of delivering inherent uncertainty information in choice experiments," Ecological Economics, Elsevier, vol. 131(C), pages 231-240.
    10. Osberghaus, Daniel, 2015. "The determinants of private flood mitigation measures in Germany — Evidence from a nationwide survey," Ecological Economics, Elsevier, vol. 110(C), pages 36-50.
    11. Garces-Voisenat, Juan-Pedro & Mukherjee, Zinnia, 2016. "Paying for green energy: The case of the Chilean Patagonia," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 397-414.
    12. Gibson, Fiona & Pannell, David & Boxall, Peter & Burton, Michael & Johnston, Robert & Kragt, Marit & Rogers, Abbie & Rolfe, John, 2016. "Non-market valuation in the economic analysis of natural hazards," Working Papers 236941, University of Western Australia, School of Agricultural and Resource Economics.
    13. repec:gam:jsusta:v:8:y:2016:i:3:p:226:d:65072 is not listed on IDEAS

    More about this item

    Keywords

    Choice experiment; Climate change; Combined sewer overflows; Ecological risk; Health risk; Willingness to pay;

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I10 - Health, Education, and Welfare - - Health - - - General
    • 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
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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