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Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias

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  • James A. Brox
  • Ramesh C. Kumar
  • Kenneth R. Stollery

Abstract

This article deals with the problem of item nonresponse in contingent valuation surveys using a payment-card method, by applying a grouped-data sample-selection estimation technique that is capable of imputing the missing values conditional upon a respondent's decision to answer a willingness-to-pay question. The advantage of the technique lies in its ability to utilize all of the information in the sample, permitting a more efficient estimation in the presence of item nonresponse bias. The major determinants of willingness to pay appear to be household income, number of children, education, perception of existing water quality, and identification with environmental issues. Copyright 2003, Oxford University Press.

Suggested Citation

  • James A. Brox & Ramesh C. Kumar & Kenneth R. Stollery, 2003. "Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 414-428.
    • Handle: RePEc:oup:ajagec:v:85:y:2003:i:2:p:414-428
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00130
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    1. Walid Oueslati & Nicole Madariaga & Julien Salanié, 2008. "Évaluation contingente d’aménités paysagères liées à un espace vert urbain. Une application au cas du parc Balzac de la ville d’Angers," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 87(2), pages 77-99.
    2. Levison S. Chiwaula & Gowokani Chijere Chirwa & Lucy S. Binauli & James Banda & Joseph Nagoli, 2018. "Gender differences in willingness to pay for capital-intensive agricultural technologies: the case of fish solar tent dryers in Malawi," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-15, December.
    3. Noor, Junaid & Siddiqi, Wasif & Muhammad, Taj, 2010. "Estimation of Willingness to Pay for Improvements in Drinking Water Quality in Lahore: A Case Study of WASA, Lahore," MPRA Paper 53763, University Library of Munich, Germany.
    4. Jeryl L. Mumpower & Liu Shi & James W. Stoutenborough & Arnold Vedlitz, 2013. "Psychometric and Demographic Predictors of the Perceived Risk of Terrorist Threats and the Willingness to Pay for Terrorism Risk Management Programs," Risk Analysis, John Wiley & Sons, vol. 33(10), pages 1802-1811, October.
    5. Devkota, Nirmala & Paudel, Krishna P. & Parajuli, Shanta, 2009. "Broiler Producers’ Willingness To Pay To Manage Nutrient Pollution," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46825, Southern Agricultural Economics Association.
    6. Hu, Wuyang, 2006. "Use of Spike Models in Measuring Consumers' Willingness to Pay for Non-GM Oil," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(3), pages 1-14, December.
    7. Sattout, E.J. & Talhouk, S.N. & Caligari, P.D.S., 2007. "Economic value of cedar relics in Lebanon: An application of contingent valuation method for conservation," Ecological Economics, Elsevier, vol. 61(2-3), pages 315-322, March.
    8. Francesco Jacopo Pintus, 2023. "Valuing drinking water quality after a PFAS contamination event: results from a meta-analysis benefit transfer," "Marco Fanno" Working Papers 0308, Dipartimento di Scienze Economiche "Marco Fanno".
    9. James Macaskill & Patrick Lloyd‐Smith, 2022. "Six decades of environmental resource valuation in Canada: A synthesis of the literature," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 73-89, March.
    10. Hyde, Kelly, 2020. "The Regressive Costs of Drinking Water Contaminant Avoidance," GLO Discussion Paper Series 703, Global Labor Organization (GLO).
    11. D'Souza, Gerard E. & Collins, Alan R. & Benson, Matt & Borisova, Tatiana, 2006. "Differences among Watershed Sub-Populations in Willingness to Pay for Water Quality Improvements: The Impact of TMDL Development," 2006 Annual meeting, July 23-26, Long Beach, CA 21195, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Marius Yapo & Jie He & Bruno Gagnon & Luc Savard & Roland Leduc, 2015. "La valeur économique pour l’amélioration de la qualité de l’eau: le cas de la rivière Magog et du lac Magog (Québec, Canada)," Cahiers de recherche 15-15, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    13. Collins, Alan R. & Rosenberger, Randall S., 2007. "Protest Adjustments in the Valuation of Watershed Restoration Using Payment Card Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-15, October.
    14. Elwin G. Smith & Mark E. Eiswerth & Terrence S. Veeman, 2010. "Current and Emerging Water Issues in Agriculture: An Overview," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(s1), pages 403-409, December.
    15. Hu, Wuyang & Woods, Timothy & Bastin, Sandra & Cox, Linda & You, Wen, 2011. "Assessing Consumer Willingness to Pay for Value-Added Blueberry Products Using a Payment Card Survey," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 243-258, May.
    16. Beaudet, Chloé & Tardieu, Léa & David, Maia, 2022. "Are citizens willing to accept changes in public lighting for biodiversity conservation?," Ecological Economics, Elsevier, vol. 200(C).
    17. del Saz Salazar, Salvador & Hernandez Sancho, Francesc & Sala Garrido, Ramon, 2009. "Estimación del valor económico de la calidad del agua de un río mediante una doble aproximación: una aplicación de los principios económicos de la Directiva Marco del Agua," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 9(01), pages 1-27.
    18. Fang, Yingkai & Asche, Frank & Gao, Zhifeng, 2020. "Can ecolabel certifications for restaurants influence consumer choices away from home?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304268, Agricultural and Applied Economics Association.
    19. 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.
    20. Russell Triplett & Chiradip Chatterjee & Christopher K. Johnson & Parvez Ahmed, 2019. "Perceptions of Quality and Household Water Usage: A Representative Study in Jacksonville, FL," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(2), pages 195-208, May.
    21. Devkota, Nirmala & Paudel, Krishna P., 2009. "Production Termination As An Alternative To Mitigate Nutrient Pollution," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46826, Southern Agricultural Economics Association.
    22. Khatri-Chhetri, Arun & Collins, Alan R., 2011. "Estimation of a Surface Water Quality Valuation Index for the Appalachian Region," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103653, Agricultural and Applied Economics Association.
    23. William F. Vásquez & Pallab Mozumder & Dina Franceschi, 2015. "Water Quality, Household Perceptions and Averting Behavior: Evidence from Nicaragua," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-21, December.
    24. Won-Seok Lee & Seung-Hoon Yoo & Jeehyeong Kim, 2013. "Measuring the Economic Benefits of the Tap Water Supply Service in Urban Areas: The Case of Korea," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(2), pages 619-627, January.
    25. Maria Ana Odejar & Kostas Mavromaras & Mandy Ryan, 2004. "Messy Data Modelling in Health Care Contingent Valuation Studies," Econometric Society 2004 North American Summer Meetings 406, Econometric Society.

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