IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v32y2005i4p509-531.html
   My bibliography  Save this article

Households’ Willingness to Pay for Water Service Attributes

Author

Listed:
  • David Hensher
  • Nina Shore
  • Kenneth Train

    ()

Abstract

Water consumption and disposal are often taken for granted as essential services with required levels of service quality, yet little is known about how much consumers are willing to pay for specific service levels. As customers in many countries face changing levels of water availability (especially shortages linked possibly to climate change and limited catchment capacity), the need to assess the value (and hence benefit) to society of varying service levels and prices in an effort to secure the provision of and disposal of water has risen on public agendas. In an attempt to establish how much customers are willing to pay for specific levels of service, we use a series of stated choice experiments and mixed logit models to establish the willingness to pay to avoid interruptions in water service and overflows of wastewater, differentiated by the frequency, timing and duration of these events. The empirical evidence is an important input into the regulatory process for establishing service levels and tariffs, as well as useful planning information for agencies charged with finding cost effective ways of delivering services at prices that customers deem to be value for money. Copyright Springer 2005

Suggested Citation

  • 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.
  • Handle: RePEc:kap:enreec:v:32:y:2005:i:4:p:509-531
    DOI: 10.1007/s10640-005-7686-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10640-005-7686-7
    Download Restriction: Access to full text is restricted to subscribers.

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

    More about this item

    Keywords

    mixed logit; waste water; water service; JEL classifications: C13; C25; D12; Q25;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    Statistics

    Access and download statistics

    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:kap:enreec:v:32:y:2005:i:4:p:509-531. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.