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The influence of individuals in forming collective household preferences for water quality

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  • Rungie, Cam
  • Scarpa, Riccardo
  • Thiene, Mara

Abstract

Preference for water quality and its nonmarket valuation can be used to inform the development of pricing policies and long term supply strategies. Tap water quality is a household concern. The objective status quo of water provision varies between households and not between individuals within households, while charges are levied on households not individuals. Individual preferences differ from collective preferences. In households where there are two adults, we examine the preferences of each separately and then as a couple in collective decisions. We show the level of influence each has in developing the collective decision process. We use discrete choice experiments to model preference heterogeneity across three experiments on women, men and on both. We propose a random utility model which decomposes the error structure in the utility of alternatives so as to identify the individual influence in collective decisions. This approach to choice data analysis is new to environmental economics.

Suggested Citation

  • Rungie, Cam & Scarpa, Riccardo & Thiene, Mara, 2014. "The influence of individuals in forming collective household preferences for water quality," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 161-174.
  • Handle: RePEc:eee:jeeman:v:68:y:2014:i:1:p:161-174
    DOI: 10.1016/j.jeem.2014.04.005
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    References listed on IDEAS

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    Cited by:

    1. Jack, Kelsey & Jayachandran, Seema & Rao, Sarojini, 2018. "Environmental externalities and free-riding in the household," CEPR Discussion Papers 12558, C.E.P.R. Discussion Papers.
    2. Riccardo Scarpa & Cristiano Franceschinis & Mara Thiene, 2017. "A Monte Carlo Evaluation of the Logit-Mixed Logit under Asymmetry and Multimodality," Working Papers in Economics 17/23, University of Waikato.
    3. Nick Hanley & Mikołaj Czajkowski, 2017. "Stated Preference valuation methods: an evolving tool for understanding choices and informing policy," Working Papers 2017-01, Faculty of Economic Sciences, University of Warsaw.
    4. Hasselbach, Johanna Lena & Rungie, Cam & Roosen, Jutta, 2015. "The value of ethical concern - Willingness to pay for animal welfare, local origin and organic production," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202729, European Association of Agricultural Economists.
    5. Beck, Matthew J. & Hess, Stephane, 2016. "Willingness to accept longer commutes for better salaries: Understanding the differences within and between couples," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 1-16.
    6. repec:eee:regeco:v:68:y:2018:i:c:p:23-35 is not listed on IDEAS
    7. Kountouris, Yiannis & Nakic, Zoran & Sauer, Johannes, 2015. "Political instability and non-market valuation: Evidence from Croatia," Resource and Energy Economics, Elsevier, vol. 41(C), pages 19-39.

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