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Evaluating Consumers’ Willingness to Pay for Improved Potable Water Quality and Quantity

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Listed:
  • M. Genius
  • E. Hatzaki
  • E. Kouromichelaki
  • G. Kouvakis
  • S. Nikiforaki
  • K. Tsagarakis

    ()

Abstract

The present research is about water supply shortages and low drinking water quality in the Municipality of Rethymno during peak water demand periods. More specifically, the aim of this work is to elicit Rethymno residents’ willingness to pay (WTP), by applying the CVM methodology, as the percent over their water bill, for the completion of future projects that the Municipal Enterprise for Water Supply and Sewerage (MEWSS) of Rethymno intends to implement to avoid shortages and improve tap water quality. The current contingent valuation study is performed based on data collected through personal interviews where respondents are asked about their WTP for a given improvement in the water supply. The results point out that female respondents, households with high income, with children, and households which do not use tap water for drinking, are on average willing to pay more. The mean WTP for these future projects was estimated to be 10.64 € (17.67% of the average bill). The mean WTP amount can be useful to decision makers undertaking an environmental cost benefit analysis, where full cost should be recovered. Interviewing people in the context of a valuation scenario, informs them for improvements that will be undertaken from the new projects under consideration and at the same time involves them as users in the decision making process. Copyright Springer Science+Business Media B.V. 2008

Suggested Citation

  • M. Genius & E. Hatzaki & E. Kouromichelaki & G. Kouvakis & S. Nikiforaki & K. Tsagarakis, 2008. "Evaluating Consumers’ Willingness to Pay for Improved Potable Water Quality and Quantity," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 22(12), pages 1825-1834, December.
  • Handle: RePEc:spr:waterr:v:22:y:2008:i:12:p:1825-1834
    DOI: 10.1007/s11269-008-9255-7
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    Cited by:

    1. Nikoleta Jones & Konstantinos Evangelinos & Petros Gaganis & Eugenia Polyzou, 2011. "Citizens’ Perceptions on Water Conservation Policies and the Role of Social Capital," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(2), pages 509-522, January.
    2. Michael Kaplowitz & Frank Lupi & Oscar Arreola, 2012. "Local Markets for Payments for Environmental Services: Can Small Rural Communities Self-Finance Watershed Protection?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(13), pages 3689-3704, October.
    3. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    4. Dacinia Crina Petrescu & Ruxandra Mălina Petrescu-Mag & Dorin Iosif Manciula & Ioan Alin Nistor & Veronica Ioana Ilieș, 2018. "Wastewater Reflections in Consumer Mind: Evidence from Sewage Services Consumer Behaviour," Sustainability, MDPI, Open Access Journal, vol. 11(1), pages 1-15, December.
    5. Olivia Jensen & Namrata Chindarkar, 2019. "Sustaining Reforms in Water Service Delivery: the Role of Service Quality, Salience, Trust and Financial Viability," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(3), pages 975-992, February.
    6. Kevin Boyle & Sapna Kaul & Ali Hashemi & Xiaoshu Li, 2015. "Applicability of benefit transfers for evaluation of homeland security counterterrorism measures," Chapters, in: Carol Mansfield & V. K. Smith (ed.),Benefit–Cost Analyses for Security Policies, chapter 10, pages 225-253, Edward Elgar Publishing.
    7. Van Houtven, George L. & Pattanayak, Subhrendu K. & Usmani, Faraz & Yang, Jui-Chen, 2017. "What are Households Willing to Pay for Improved Water Access? Results from a Meta-Analysis," Ecological Economics, Elsevier, vol. 136(C), pages 126-135.
    8. Salvador Saz-Salazar & Miguel A. García-Rubio & Francisco González-Gómez & Andrés J. Picazo-Tadeo, 2016. "Managing Water Resources Under Conditions of Scarcity: On Consumers’ Willingness to Pay for Improving Water Supply Infrastructure," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(5), pages 1723-1738, March.
    9. Zawojska, Ewa & Czajkowski, Mikolaj & Giergiczny, Marek, 2018. "Valuing tap water quality improvements using stated preference methods. Does the number of discrete choice options matter?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274019, Agricultural and Applied Economics Association.
    10. Shaofeng Jia & Qiubo Long & Raymond Yu Wang & Jiabo Yan & Deyong Kang, 2016. "On the Inapplicability of the Cobb-Douglas Production Function for Estimating the Benefit of Water Use and the Value of Water Resources," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(10), pages 3645-3650, August.
    11. Mesa-Jurado, Maria A. & Martin-Ortega, Julia & Ruto, Eric & Berbel, Julio, 2011. "The economic value of guaranteed water supply for irrigation under scarcity conditions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114650, European Association of Agricultural Economists.
    12. Wanjiru, Evan M. & Zhang, Lijun & Xia, Xiaohua, 2016. "Model predictive control strategy of energy-water management in urban households," Applied Energy, Elsevier, vol. 179(C), pages 821-831.
    13. Masserini Lucio & Romano Giulia & Corsini Lorenzo, 2018. "Investigating Attitudes towards Water Savings, Price Increases, and Willingness to Pay among Italian University Students," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(12), pages 4123-4138, September.
    14. David Roibas & Maria A. Garcia-Valiñas & Roberto Fernandez-Llera, 2019. "Measuring the Impact of Water Supply Interruptions on Household Welfare," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 159-179, May.
    15. Jia Wang & Jiaoju Ge & Zhifeng Gao, 2018. "Consumers’ Preferences and Derived Willingness-to-Pay for Water Supply Safety Improvement: The Analysis of Pricing and Incentive Strategies," Sustainability, MDPI, Open Access Journal, vol. 10(6), pages 1-16, May.
    16. Julia Martin-Ortega & Giacomo Giannoccaro & Julio Berbel, 2011. "Environmental and Resource Costs Under Water Scarcity Conditions: An Estimation in the Context of the European Water Framework Directive," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(6), pages 1615-1633, April.
    17. Roberto Ponce & Felipe Vásquez & Alejandra Stehr & Patrick Debels & Carlos Orihuela, 2011. "Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(10), pages 2449-2466, August.
    18. Polyzou, E. & Jones, N. & Evangelinos, K.I. & Halvadakis, C.P., 2011. "Willingness to pay for drinking water quality improvement and the influence of social capital," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 74-80, February.
    19. Stefanos Xenarios & Kostas Bithas, 2009. "Welfare Improvisation from the Receiving Waters of Urban Wastewater Systems in the Context of the Water Framework Directive," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(5), pages 981-1000, March.
    20. 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.
    21. Darla Hatton MacDonald & Mark Morrison & Mary Barnes, 2010. "Willingness to Pay and Willingness to Accept Compensation for Changes in Urban Water Customer Service Standards," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(12), pages 3145-3158, September.
    22. Guofang Zhai & Takeshi Suzuki, 2009. "Evaluating Economic Value of Coastal Waterfront in Tokyo Bay, Japan with Willingness-to-Accept Measure," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(4), pages 633-645, March.
    23. Georgios Tentes & Dimitrios Damigos, 2012. "The Lost Value of Groundwater: The Case of Asopos River Basin in Central Greece," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(1), pages 147-164, January.
    24. William Vásquez & Dina Franceschi, 2013. "System Reliability and Water Service Decentralization: Investigating Household Preferences in Nicaragua," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(14), pages 4913-4926, November.
    25. Nur Syuhada, C.I. & Mahirah, K. & Roseliza, M.A., 2020. "Dealing with attributes in a discrete choice experiment on valuation of water services in East Peninsular Malaysia," Utilities Policy, Elsevier, vol. 64(C).

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