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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.

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  • 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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    10. 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.
    11. Riccardo Scarpa & Cristiano Franceschinis & Mara Thiene, 2021. "Logit Mixed Logit Under Asymmetry and Multimodality of WTP: A Monte Carlo Evaluation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 643-662, March.
    12. Masserini Lucio & Romano Giulia & Corsini Lorenzo, 2018. "Investigating Attitudes towards Water Savings, Price Increases, and Willingness to Pay among Italian University Students," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(12), pages 4123-4138, September.
    13. 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.
    14. Cristiano Franceschinis & Riccardo Scarpa & Mara Thiene & John Rose & Michele Moretto & Raffaele Cavalli, 2016. "Exploring the Spatial Heterogeneity of Individual Preferences for Ambient Heating Systems," Energies, MDPI, vol. 9(6), pages 1-19, May.
    15. 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.
    16. Matthew J. Beck & John M. Rose, 2019. "Stated preference modelling of intra-household decisions: Can you more easily approximate the preference space?," Transportation, Springer, vol. 46(4), pages 1195-1213, August.
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    18. Sever, Ivan & Verbič, Miroslav & Klarić Sever, Eva, 2019. "Cost attribute in health care DCEs: Just adding another attribute or a trigger of change in the stated preferences?," Journal of choice modelling, Elsevier, vol. 32(C), pages 1-1.

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