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Determinants of Individuals' Willingness to Pay for Perceived Reductions in Environmental Health Risks: A Case Study of Bathing Water Quality

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  • S Georgiou
  • I H Langford
  • I J Bateman
  • R K Turner

Abstract

A contingent valuation (CV) study was undertaken to investigate individuals' stated willingness to pay (WTP) to reduce perceived risks of illness from the quality of bathing water at two beaches in East Anglia, United Kingdom. One beach, Great Yarmouth, failed to meet the EC (European Community) Bathing Water Quality Directive standard, whereas the other at Lowestoft passed. The analysis focuses on determinants of individuals' WTP, including measures of risk perception and attitudes to health not usually measured in CV studies. A conceptual model is then presented which sets the valuation of individual preferences in the context of personal worldviews, and external cultural, societal, and environmental factors which may influence, directly or indirectly, an individual's stated WTP.

Suggested Citation

  • S Georgiou & I H Langford & I J Bateman & R K Turner, 1998. "Determinants of Individuals' Willingness to Pay for Perceived Reductions in Environmental Health Risks: A Case Study of Bathing Water Quality," Environment and Planning A, , vol. 30(4), pages 577-594, April.
    • Handle: RePEc:sae:envira:v:30:y:1998:i:4:p:577-594
    DOI: 10.1068/a300577
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    References listed on IDEAS

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    1. Langford, Ian H. & Bateman, Ian J., 1996. "Elicitation and truncation effects in contingent valuation studies," Ecological Economics, Elsevier, vol. 19(3), pages 265-267, December.
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    1. Areti Kontogianni & Ian Langford & Andreas Papandreou & Mihalis Skourtos, 2003. "Social Preferences for Improving Water Quality: An Economic Analysis of Benefits from Wastewater Treatment," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 17(5), pages 317-336, October.
    2. Saem Lee & Hyun No Kim & Trung Thanh Nguyen & Thomas Koellner & Hio-Jung Shin, 2018. "Farmers’ and Consumers’ Preferences for Drinking Water Quality Improvement through Land Management Practices: The Case Study of the Soyang Watershed in South Korea," Sustainability, MDPI, vol. 10(5), pages 1-15, May.
    3. David Pearce, 1998. "Environmental Appraisal and Environmental Policy in the European Union," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 489-501, April.
    4. Hoyos, David & Mariel, Petr & Fernández-Macho, Javier, 2009. "The influence of cultural identity on the WTP to protect natural resources: Some empirical evidence," Ecological Economics, Elsevier, vol. 68(8-9), pages 2372-2381, June.
    5. Thomas Klose, 2003. "A utility‐theoretic model for QALYs and willingness to pay," Health Economics, John Wiley & Sons, Ltd., vol. 12(1), pages 17-31, January.
    6. Bateman, Ian J. & Day, Brett H. & Dupont, Diane P. & Georgiou, Stavros, 2006. "Incentive compatibility and procedural invariance testing of the one-and-one-half-bound dichotomous choice elicitation method: distinguishing strategic behaviour from the anchoring heuristic," 2006 Annual meeting, July 23-26, Long Beach, CA 21104, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Birdir, Sevda & Ünal, Özlem & Birdir, Kemal & Williams, Allan T., 2013. "Willingness to pay as an economic instrument for coastal tourism management: Cases from Mersin, Turkey," Tourism Management, Elsevier, vol. 36(C), pages 279-283.
    8. M. Guimarães & Carlos Sousa & Tiago Garcia & Tomaz Dentinho & Tomasz Boski, 2011. "The value of improved water quality in Guadiana estuary—a transborder application of contingent valuation methodology," Letters in Spatial and Resource Sciences, Springer, vol. 4(1), pages 31-48, March.
    9. Paul A. Hindsley & O. Ashton Morgan, 2020. "The Role of Cultural Worldviews in Willingness to Pay for Environmental Policy," Working Papers 20-03, Department of Economics, Appalachian State University.
    10. Hynes, Stephen & Tinch, Dugald & Hanley, Nick, 2013. "Estimating the value of improvements to coastal waters resulting from revisions of the EU Bathing Waters Directive," Working Papers 160058, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    11. Meg Perry-Duxbury & Job Exel & Werner Brouwer, 2019. "How to value safety in economic evaluations in health care? A review of applications in different sectors," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1041-1061, September.
    12. Nick Hanley & Bengt Kristrom, "undated". "What’s it worth? Exploring value uncertainty using interval questions in Contingent Valuation," Working Papers 2002_10, Business School - Economics, University of Glasgow.
    13. Ian H. Langford, 2002. "An Existential Approach to Risk Perception," Risk Analysis, John Wiley & Sons, vol. 22(1), pages 101-120, February.
    14. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    15. Anne Wambui Mumbi & Tsunemi Watanabe, 2021. "Willingness to Pay and Participate in Improved Water Quality by Lay People and Factory Workers: A Case Study of River Sosiani, Eldoret Municipality, Kenya," Sustainability, MDPI, vol. 13(4), pages 1-30, February.
    16. Nick Hanley & Stephen Hynes & Niels Jobstvogt & David M. Paterson, 2014. "Economic valuation of marine and coastal ecosystems:Is it currently fit for purpose?," Discussion Papers in Environment and Development Economics 2014-11, University of St. Andrews, School of Geography and Sustainable Development.
    17. Nick Hanley & David Bell & Begona Alvarez-Farizo, 2003. "Valuing the Benefits of Coastal Water Quality Improvements Using Contingent and Real Behaviour," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(3), pages 273-285, March.
    18. Bastone, Chris & Stewart-Carbines, Megan & Kerr, Geoffrey N. & Sharp, Basil M.H. & Meister, Anton D., 2010. "Understanding values associated with stormwater remediation options in marine coastal ecosystems: A case study from Auckland, New Zealand," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59578, Australian Agricultural and Resource Economics Society.
    19. Börger, Tobias & Beaumont, Nicola J. & Pendleton, Linwood & Boyle, Kevin J. & Cooper, Philip & Fletcher, Stephen & Haab, Tim & Hanemann, Michael & Hooper, Tara L. & Hussain, S. Salman & Portela, Rosim, 2014. "Incorporating ecosystem services in marine planning: The role of valuation," Marine Policy, Elsevier, vol. 46(C), pages 161-170.
    20. Andrea M. Leiter & Gerald J. Pruckner, 2014. "Timing Effects In Health Valuations," Health Economics, John Wiley & Sons, Ltd., vol. 23(6), pages 743-750, June.
    21. Ian H. Langford & Claire Marris & Annë‐Lise McDonald & Harvey Goldstein & Jon Rasbash & Tim O'Riordan, 1999. "Simultaneous Analysis of Individual and Aggregate Responses in Psychometric Data Using Multilevel Modeling," Risk Analysis, John Wiley & Sons, vol. 19(4), pages 675-683, August.
    22. Nguyen Duc Kien & Nguyen H. D. My & Dang Thi Anh Thu & Ton That Canh Tri & Nghiem Hong Son & Thai Khanh Phong & Hoang Cong Tin & Nguyen Hoang Lan & Tran Binh Thang & Bui Dung The & Phung Tri Dung, 2023. "Valuation of a Heatwave Early Warning System for Mitigating Risks Associated with Heat-Related Illness in Central Vietnam," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    23. Carlos Jurado-Rivas & Marcelino Sánchez-Rivero, 2019. "Willingness to Pay for More Sustainable Tourism Destinations in World Heritage Cities: The Case of Caceres, Spain," Sustainability, MDPI, vol. 11(21), pages 1-21, October.

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