IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v82y2023ics0957178723000383.html
   My bibliography  Save this article

Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala

Author

Listed:
  • Leiva, Benjamin
  • Van Houtven, George
  • Vásquez, William F.
  • Nájera, Andrea

Abstract

Water service interruptions often impose considerable costs on water users, and lead more households to invest in in-home water storage infrastructure. Studying the value households assign to continuous water supply may help design more effective policies. Using a unique primary dataset from Guatemala City (n = 567), we estimate hedonic models of rental prices to derive marginal values of fewer water service interruptions and in-home water storage infrastructure. Results indicate that, on average, rental prices decrease by 0.7% with each day of water service interruptions and increase by 10% for housing units with storage infrastructure relative to those without it.

Suggested Citation

  • Leiva, Benjamin & Van Houtven, George & Vásquez, William F. & Nájera, Andrea, 2023. "Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala," Utilities Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000383
    DOI: 10.1016/j.jup.2023.101526
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178723000383
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2023.101526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ngawang Dendup & Kuenzang Tshering, 2018. "Demand for piped drinking water and a formal sewer system in Bhutan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 681-703, July.
    2. Yusep Suparman & Henk Folmer & Johan H.L. Oud, 2016. "The willingness to pay for in-house piped water in urban and rural Indonesia," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 407-426, June.
    3. Gregory Pierce & Silvia Jimenez, 2015. "Unreliable Water Access in U.S. Mobile Homes: Evidence From the American Housing Survey," Housing Policy Debate, Taylor & Francis Journals, vol. 25(4), pages 739-753, October.
    4. Nauges, Céline & Strand, Jon & Walker, Ian, 2009. "The value of water connections in Central American cities: a revealed preference study," Environment and Development Economics, Cambridge University Press, vol. 14(3), pages 349-370, June.
    5. Choumert, Johanna & Phélinas, Pascale, 2015. "Determinants of agricultural land values in Argentina," Ecological Economics, Elsevier, vol. 110(C), pages 134-140.
    6. Yusuf, Arief Anshory & Koundouri, Phoebe, 2005. "Willingness to pay for water and location bias in hedonic price analysis: evidence from the Indonesian housing market," Environment and Development Economics, Cambridge University Press, vol. 10(6), pages 821-836, December.
    7. William F. Vásquez & Laura Beaudin, 2020. "On the use of hypothetical price data to estimate hedonic models in a developing country context," Letters in Spatial and Resource Sciences, Springer, vol. 13(3), pages 219-231, December.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    9. Luc Anselin & Nancy Lozano-Gracia & Uwe Deichmann & Somik Lall, 2010. "Valuing Access to Water—A Spatial Hedonic Approach, with an Application to Bangalore, India," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 161-179.
    10. Van Houtven, George L. & Pattanayak, Subhrendu K. & Usmani, Faraz & Yang, Jui-Chen, 2017. "What are Households Willing to Pay for Improved Water Access? Results from a Meta-Analysis," Ecological Economics, Elsevier, vol. 136(C), pages 126-135.
    11. Jennifer Trudeau & Anna-Maria Aksan & William F. Vásquez, 2018. "Water system unreliability and diarrhea incidence among children in Guatemala," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 63(2), pages 241-250, March.
    12. Nur Syuhada, C.I. & Mahirah, K. & Roseliza, M.A., 2020. "Dealing with attributes in a discrete choice experiment on valuation of water services in East Peninsular Malaysia," Utilities Policy, Elsevier, vol. 64(C).
    13. Shiloh Deitz & Katie Meehan, 2019. "Plumbing Poverty: Mapping Hot Spots of Racial and Geographic Inequality in U.S. Household Water Insecurity," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 109(4), pages 1092-1109, July.
    14. Merry, Frank & Amacher, Gregory & Lima, Eirivelthon, 2008. "Land Values in Frontier Settlements of the Brazilian Amazon," World Development, Elsevier, vol. 36(11), pages 2390-2401, November.
    15. Ayala Wineman & Thomas S Jayne, 2018. "Land Prices Heading Skyward? An Analysis of Farmland Values across Tanzania," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 187-214.
    16. Yusep Suparman & Henk Folmer & Johan Oud, 2014. "Hedonic price models with omitted variables and measurement errors: a constrained autoregression–structural equation modeling approach with application to urban Indonesia," Journal of Geographical Systems, Springer, vol. 16(1), pages 49-70, January.
    17. David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December.
    18. Johanna Choumert & N. Eric Kéré & Amandine Loyal Laré-Dondarini, 2016. "A Multi-Level Housing Hedonic Analysis of Water and Sanitation Access," Economics Bulletin, AccessEcon, vol. 36(2), pages 1010-1037.
    19. Beard, Victoria A. & Mitlin, Diana, 2021. "Water access in global South cities: The challenges of intermittency and affordability," World Development, Elsevier, vol. 147(C).
    20. Orgill-Meyer, Jennifer & Jeuland, Marc & Albert, Jeff & Cutler, Nathan, 2018. "Comparing Contingent Valuation and Averting Expenditure Estimates of the Costs of Irregular Water Supply," Ecological Economics, Elsevier, vol. 146(C), pages 250-264.
    21. Irfan Muhammad, 2017. "Disamenity impact of Nala Lai (open sewer) on house rent in Rawalpindi city," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 77-97, January.
    22. Caroline Berg & Céline Nauges, 2012. "The willingness to pay for access to piped water: a hedonic analysis of house prices in Southwest Sri Lanka," Letters in Spatial and Resource Sciences, Springer, vol. 5(3), pages 151-166, October.
    23. Joshi, Janak & Ali, Mohammad & Berrens, Robert P., 2017. "Valuing farm access to irrigation in Nepal: A hedonic pricing model," Agricultural Water Management, Elsevier, vol. 181(C), pages 35-46.
    24. Carriazo, Fernando & Gomez-Mahecha, John Alexander, 2018. "The demand for air quality: evidence from the housing market in Bogotá, Colombia," Environment and Development Economics, Cambridge University Press, vol. 23(2), pages 121-138, April.
    25. Batsirai Majuru & Marc Suhrcke & Paul R. Hunter, 2016. "How Do Households Respond to Unreliable Water Supplies? A Systematic Review," IJERPH, MDPI, vol. 13(12), pages 1-20, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William F. Vásquez & Laura Beaudin, 2020. "On the use of hypothetical price data to estimate hedonic models in a developing country context," Letters in Spatial and Resource Sciences, Springer, vol. 13(3), pages 219-231, December.
    2. Ngawang Dendup & Kuenzang Tshering, 2018. "Demand for piped drinking water and a formal sewer system in Bhutan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 681-703, July.
    3. Sen Chakraborty, Kritika & Chakraborty, Avinandan & Berrens, Robert P., 2023. "Valuing soil erosion control investments in Nigerian agricultural lands: A hedonic pricing model," World Development, Elsevier, vol. 170(C).
    4. Ritter, Matthias & Hüttel, Silke & Odening, Martin & Seifert, Stefan, 2020. "Revisiting the relationship between land price and parcel size in agriculture," Land Use Policy, Elsevier, vol. 97(C).
    5. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    6. Alexandra K. Shannon & Faraz Usmani & Subhrendu K. Pattanayak & Marc Jeuland, 2019. "The Price of Purity: Willingness to Pay for Air and Water Purification Technologies in Rajasthan, India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1073-1100, August.
    7. Sana AKHTAR & Sarah DEAN & Faiza ANJUM & Maryam JAVED, 2018. "Determination of Willingness to Pay for Improved Water Supply in Selected Areas of Lahore," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-12, June.
    8. Galarza, Francisco & Carbajal Navarro, Max Arturo & Aguirre Montoya, Julio, 2022. "Willingness to pay for improved water service: evidence from urban Peru," Working Papers 22-03, Centro de Investigación, Universidad del Pacífico.
    9. Francisco González Gómez & Jorge Guardiola & Edna Guidi Gutiérrez, 2012. "Willingness to pay more for water in a climate of confrontation: The case of Sucre, Bolivia," Working Papers. Serie EC 2012-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    10. Yusep Suparman & Henk Folmer & Johan H.L. Oud, 2016. "The willingness to pay for in-house piped water in urban and rural Indonesia," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 407-426, June.
    11. Ayala Wineman & Thomas S Jayne, 2018. "Land Prices Heading Skyward? An Analysis of Farmland Values across Tanzania," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 187-214.
    12. Heinrich Zozmann & Alexander Morgan & Christian Klassert & Bernd Klauer & Erik Gawel, 2022. "Can Tanker Water Services Contribute to Sustainable Access to Water? A Systematic Review of Case Studies in Urban Areas," Sustainability, MDPI, vol. 14(17), pages 1-27, September.
    13. Nauges,Celine & Van Den Berg,Caroline, 2006. "Water markets, demand, and cost recovery for piped water supply services : evidence from Southwest Sri Lanka," Policy Research Working Paper Series 3941, The World Bank.
    14. Xu, Chang & Li, Lingchao & Cheng, Baodong, 2021. "The impact of institutions on forestland transfer rents: The case of Zhejiang province in China," Forest Policy and Economics, Elsevier, vol. 123(C).
    15. Massarutto, Antonio & Roder, G. & Troiano, S., 2022. "Better safe than sorry? Stated preferences and the precautionary principle for securing drinking water quality in an Italian district," Utilities Policy, Elsevier, vol. 76(C).
    16. Jie-Sheng Tan Soo, 2018. "Valuing Air Quality in Indonesia Using Households’ Locational Choices," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(3), pages 755-776, November.
    17. Train, Kenneth & Wilson, Wesley W., 2008. "Estimation on stated-preference experiments constructed from revealed-preference choices," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 191-203, March.
    18. Caroline Berg & Céline Nauges, 2012. "The willingness to pay for access to piped water: a hedonic analysis of house prices in Southwest Sri Lanka," Letters in Spatial and Resource Sciences, Springer, vol. 5(3), pages 151-166, October.
    19. Nauges, Celine & Strand, Jon, 2007. "Estimation of non-tap water demand in Central American cities," Resource and Energy Economics, Elsevier, vol. 29(3), pages 165-182, September.
    20. Pérez-Urdiales, María & Libra, Jesse M. & Machado, Kleber B. & Serebrisky, Tomás & Sosa, Ben Solís, 2024. "Household water bill perception in Brazil," Utilities Policy, Elsevier, vol. 87(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000383. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.