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Estimating Willingness to Pay for Improved Drinking Water Quality Using Averting Behavior Method with Perception Measure

  • Mi-Jung Um
  • Seung-Jun Kwak
  • Tai-Yoo Kim
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    This paper suggests an application of an averting behaviormethod to reconcile inconsistent public activity with objectiveenvironmental risk. In Korea, an historically polluted watersupply has created citizen resistance to using tap water. Koreansperceive low quality levels for tap water, although objectivelymeasured data show that the pollution levels are lower than theacceptable risk. We hypothesized that the irrational aversion tousing tap water is a consequence of inconsistencies between theobjectively measured and perceived pollution levels. We introducethe perception averting behavior method, in which we add aperception measure unit to the conventional averting behaviormethod. We found that the perception measure provided a validexplanation for citizens' aversion to using tap water in Korea. Copyright Kluwer Academic Publishers 2002

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    File URL: http://hdl.handle.net/10.1023/A:1014537330423
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    Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

    Volume (Year): 21 (2002)
    Issue (Month): 3 (March)
    Pages: 285-300

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    Handle: RePEc:kap:enreec:v:21:y:2002:i:3:p:285-300
    Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100263

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    1. Bartik, Timothy J., 1988. "Evaluating the benefits of non-marginal reductions in pollution using information on defensive expenditures," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 111-127, March.
    2. Andrew S. Laughland & Wesley N. Musser & James S. Shortle & Lynn M. Musser, 1996. "Construct Validity of Averting Cost Measures of Environmental Benefits," Land Economics, University of Wisconsin Press, vol. 72(1), pages 100-112.
    3. Grether, David M. & Plott, Charles R., . "Economic Theory of Choice and the Preference Reversal Phenomenon," Working Papers 152, California Institute of Technology, Division of the Humanities and Social Sciences.
    4. Charles W. Abdalla & Brian A. Roach & Donald J. Epp, 1992. "Valuing Environmental Quality Changes Using Averting Expenditures: An Application to Groundwater Contamination," Land Economics, University of Wisconsin Press, vol. 68(2), pages 163-169.
    5. Harrington, Winston & Krupnick, Alan J. & Spofford, Walter Jr., 1989. "The economic losses of a waterborne disease outbreak," Journal of Urban Economics, Elsevier, vol. 25(1), pages 116-137, January.
    6. Tversky, Amos & Slovic, Paul & Kahneman, Daniel, 1990. "The Causes of Preference Reversal," American Economic Review, American Economic Association, vol. 80(1), pages 204-17, March.
    7. Arrow, Kenneth J, 1982. "Risk Perception in Psychology and Economics," Economic Inquiry, Western Economic Association International, vol. 20(1), pages 1-9, January.
    8. Gerking, Shelby & Stanley, Linda R, 1986. "An Economic Analysis of Air Pollution and Health: The Case of St. Louis," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 115-21, February.
    9. Courant, Paul N. & Porter, Richard C., 1981. "Averting expenditure and the cost of pollution," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 321-329, December.
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