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Social Preferences for Improving Water Quality: An Economic Analysis of Benefits from Wastewater Treatment

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  • Areti Kontogianni
  • Ian Langford
  • Andreas Papandreou
  • Mihalis Skourtos

Abstract

Greece has a large number of wastewater treatment plants (WWTP) under construction or recently completed. However, whilst the European Union provides funds for the capital development of WWTPs, there is often a lack of funding to maintain full operation of these plants. This study examines the case of a WWTP in Thessaloniki, Greece, which is currently only partially operational. We use the contingent valuation method to examine the willingness to pay of individuals to ensure the full operation of the WWTP, leading to significantimprovements in the water quality of Thermaikos Bay, which is adjacent to Thessaloniki. The average amount pledged of Euro 15.23 due every four months as an incremental increase in water rates matches the funding required to fully operate the plant. By examining the motivations of those willing to pay, we find that a complex combination of consumer and citizen modes of cognition, linked to self identity and pride in the city as well as moral and ethical concerns, determine individuals' commitment to the water quality improvement scheme. These findings have serious policy implications for gauging public support for environmental improvements. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • 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.
    • Handle: RePEc:spr:waterr:v:17:y:2003:i:5:p:317-336
    DOI: 10.1023/A:1025866818391
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    References listed on IDEAS

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    1. Ian H. Langford & Stavros Georgiou & Ian J. Bateman & Rosemary J. Day & R. Kerry Turner, 2000. "Public Perceptions of Health Risks from Polluted Coastal Bathing Waters: A Mixed Methodological Analysis Using Cultural Theory," Risk Analysis, John Wiley & Sons, vol. 20(5), pages 691-704, October.
    2. Ian H. Langford & Ian J. Bateman & Andrew P. Jones & Hugh D. Langford & Stavros Georgiou, 1998. "Improved Estimation of Willingness to Pay in Dichotomous Choice Contingent Valuation Studies," Land Economics, University of Wisconsin Press, vol. 74(1), pages 65-75.
    3. Georgiou, Stavros & Bateman, Ian J. & Langford, Ian H. & Day, Rosemary J., 2000. "Coastal bathing water health risks: developing means of assessing the adequacy of proposals to amend the 1976 EC directive," Risk, Decision and Policy, Cambridge University Press, vol. 5(1), pages 49-68, April.
    4. 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.
    5. Kontogianni, Areti & Skourtos, Mihalis S. & Langford, Ian H. & Bateman, Ian J. & Georgiou, Stavros, 2001. "Integrating stakeholder analysis in non-market valuation of environmental assets," Ecological Economics, Elsevier, vol. 37(1), pages 123-138, April.
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