Preferences for domestic water services in the Middle Olifants sub-basin of South Africa
Using household survey data, this study investigates preferences for domestic water services in the Middle Olifants sub-basin of South Africa. Water is a relative scarce resource in South Africa that is distributed unevenly both geographically and seasonally as well as socio-politically. For a water management addressing the policy objectives of efficiency in use, equity in access and benefits and long-term sustainability, economic valuation of the different water uses is required. In order to detect households' preferences, a choice experiment was conducted. Results suggested the presence of preference heterogeneity and therefore, a latent class model was applied, dividing households into homogeneous groups according to their preferences. Four distinct groups of households could be found which differ significantly in terms of their socio-economic characteristics, their attitudes toward pricing of water and their satisfaction with current water service levels. Willingness to pay (WTP) estimates of different water service characteristics in all groups indicate that households are willing to pay higher prices for a better and more reliable water services provision. But the amount households are willing to pay differs among the groups. This information is helpful for policy-makers to enable the design of water services in the Middle Olifants according to preferences of local households. Besides, WTP estimation can provide a basis for setting water tariffs.
|Date of creation:||May 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +49 228 / 73-5097
Web page: http://www.zef.de/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
- Kontoleon Andreas & Yabe Mitsuyasu, 2006. "Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-38, December.
- Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
- Eric Ruto & Guy Garrod & Riccardo Scarpa, 2008.
"Valuing animal genetic resources: a choice modeling application to indigenous cattle in Kenya,"
International Association of Agricultural Economists, vol. 38(1), pages 89-98, 01.
- Eric Ruto & Guy Garrod & Riccardo Scarpa, 2007. "Valuing Animal Genetic Resources: A Choice Modeling Application to Indigenous Cattle in Kenya," Working Papers in Economics 07/05, University of Waikato, Department of Economics.
- Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
- Morey, Edward & Thiene, Mara & De Salvo, Maria & Signorello, Giovanni, 2008. "Using attitudinal data to identify latent classes that vary in their preference for landscape preservation," Ecological Economics, Elsevier, vol. 68(1-2), pages 536-546, December.
- Stephen Hynes & Nick Hanley & Riccardo Scarpa, 2008. "Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in Recreational Demand Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1011-1027.
- Hausman, Jerry & McFadden, Daniel, 1984.
"Specification Tests for the Multinomial Logit Model,"
Econometric Society, vol. 52(5), pages 1219-40, September.
- D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
- Bill Provencher & Rebecca Moore, 2006. "A Discussion of “Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model”," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(1), pages 117-124, 05.
- Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
- Ali Chalak & Kelvin Balcombe & Alastair Bailey & Iain Fraser, 2008. "Pesticides, Preference Heterogeneity and Environmental Taxes," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 537-554, 09.
- Scarpa, Riccardo & Thiene, Mara & Galletto, Luigi, 2006.
"Consumers WTP for Wine with Certified Origin: Latent Classes Based on Attitudinal Responses,"
6689, University of Minnesota, Center for International Food and Agricultural Policy.
- Scarpa, Riccardo & Thiene, Mara & Galletto, Luigi, 2006. "Consumers WTP for wine with certified origin: Latent classes based on attitudinal responses," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10046, European Association of Agricultural Economists.
- repec:cup:cbooks:9780521788304 is not listed on IDEAS
- Ada Jansen & Carl-erik Schulz, 2006. "Water Demand And The Urban Poor: A Study Of The Factors Influencing Water Consumption Among Housholds In Cape Town, South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 593-609, 09.
- Wuyang Hu, 2004. "Trading off health, environmental and genetic modification attributes in food," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(3), pages 389-408, September.
- Provencher, Bill & Bishop, R.C.Richard C., 2004. "Does accounting for preference heterogeneity improve the forecasting of a random utility model? A case study," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 793-810, July.
- Blamey, R. K. & Bennett, J. W. & Louviere, J. J. & Morrison, M. D. & Rolfe, J., 2000. "A test of policy labels in environmental choice modelling studies," Ecological Economics, Elsevier, vol. 32(2), pages 269-286, February.
- Bill Provencher & Kenneth A. Baerenklau & Richard C. Bishop, 2002. "A Finite Mixture Logit Model of Recreational Angling with Serially Correlated Random Utility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1066-1075.
- Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-62, July.
- Scarpa, Riccardo & Drucker, Adam G. & Anderson, Simon & Ferraes-Ehuan, Nancy & Gomez, Veronica & Risopatron, Carlos R. & Rubio-Leonel, Olga, 2003. "Valuing genetic resources in peasant economies: the case of 'hairless' creole pigs in Yucatan," Ecological Economics, Elsevier, vol. 45(3), pages 427-443, July.
- Milon, J. Walter & Scrogin, David, 2006. "Latent preferences and valuation of wetland ecosystem restoration," Ecological Economics, Elsevier, vol. 56(2), pages 162-175, February.
- Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, 05.
When requesting a correction, please mention this item's handle: RePEc:ags:ubzefd:49970. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.