The Value of Improved Public Services : An Application of the Choice Experiment Method to Estimate the Value of Improved Wastewater Treatment Infrastructure in India
In this paper we employ a stated preference environmental valuation technique, namely the choice experiment method, to estimate local publics willingness to pay (WTP) for improvements in the capacity and technology of a sewage treatment plant (STP) in Chandernagore municipality, located on the banks of the River Ganga in India. A pilot choice experiment study is administered to 150 randomly selected Chandernagore residents and the data are analysed using the conditional logit model with interactions. The results reveal that residents of this municipality are willing to pay significant amounts in terms of higher monthly municipality taxes to ensure the full capacity of the STP is used for primary treatment and the technology is upgraded to enable secondary treatment. Overall, the results reported in this paper supports increased investments to improve the capacity and technology of STPs to reduce water pollution, and hence environmental and health risks that are currently threatening the sustainability of the economic, cultural and religious values this sacred river generates.
|Date of creation:||Jan 2010|
|Contact details of provider:|| Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200|
Web page: http://www.eaber.org
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.:
- Boxall, Peter C. & Adamowicz, Wiktor L., 1999. "Understanding Heterogeneous Preferences in Random Utility Models: The Use of Latent Class Analysis," Staff Paper Series 24090, University of Alberta, Department of Resource Economics and Environmental Sociology.
- Glenn Bush & Sergio Colombo & Nick Hanley, 2009. "Should all Choices Count? Using the Cut-Offs Approach to Edit Responses in a Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(3), pages 397-414, November.
- Birol, Ekin & Villalba, Eric Rayn & Smale, Melinda, 2009.
"Farmer preferences for milpa diversity and genetically modified maize in Mexico: a latent class approach,"
Environment and Development Economics,
Cambridge University Press, vol. 14(04), pages 521-540, August.
- Birol, Ekin & Villalba, Eric Rayn & Smale, Melinda, 2007. "Farmer preferences for Milpa diversity and genetically modified maize in Mexico: A latent class approach," IFPRI discussion papers 726, International Food Policy Research Institute (IFPRI).
- Sergio Colombo & Nick Hanley & Javier Calatrava-Requena, 2005. "Designing Policy for Reducing the Off-farm Effects of Soil Erosion Using Choice Experiments," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 81-95.
- Birol, Ekin & Koundouri, Phoebe & Kountouris, Yiannis, 2009. "Assessing the economic viability of alternative water resources in water scarce regions: The roles of economic valuation, cost–benefit analysis and discounting," 2009 Conference, August 16-22, 2009, Beijing, China 51692, International Association of Agricultural Economists.
- Scarpa, Riccardo & Ruto, Eric S. K. & Kristjanson, Patti & Radeny, Maren & Drucker, Adam G. & Rege, John E. O., 2003. "Valuing indigenous cattle breeds in Kenya: an empirical comparison of stated and revealed preference value estimates," Ecological Economics, Elsevier, vol. 45(3), pages 409-426, July.
- Cooper, Philip & Poe, Gregory L. & Bateman, Ian J., 2004. "The structure of motivation for contingent values: a case study of lake water quality improvement," Ecological Economics, Elsevier, vol. 50(1-2), pages 69-82, September.
- Fernandez, Linda, 1997. "Estimation of Wastewater Treatment Objectives through Maximum Entropy," Journal of Environmental Economics and Management, Elsevier, vol. 32(3), pages 293-308, March.
- Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
- 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.
- Rolfe, John & Windle, Jill, 2005. "Valuing options for reserve water in the Fitzroy Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), March.
- Hanley, Nick & Adamowicz, Wiktor & Wright, Robert E., 2005. "Price vector effects in choice experiments: an empirical test," Resource and Energy Economics, Elsevier, vol. 27(3), pages 227-234, October.
- Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
- Othman, Jamal & Bennett, Jeff & Blamey, Russell, 2004. "Environmental values and resource management options: a choice modelling experience in Malaysia," Environment and Development Economics, Cambridge University Press, vol. 9(06), pages 803-824, December.
- Fraas, Arthur G. & Munley, Vincent G., 1984. "Municipal wastewater treatment cost," Journal of Environmental Economics and Management, Elsevier, vol. 11(1), pages 28-38, March.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
- W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
- Bienabe, Estelle & Hearne, Robert R., 2006. "Public preferences for biodiversity conservation and scenic beauty within a framework of environmental services payments," Forest Policy and Economics, Elsevier, vol. 9(4), pages 335-348, December.
- Markandya, A. & Murty, M.N., 2004. "Cost benefit analysis of cleaning the Ganges: some emerging environment and development issues," Environment and Development Economics, Cambridge University Press, vol. 9(01), pages 61-81, February.
- Jeff Bennett & Ekin Birol (ed.), 2010. "Choice Experiments in Developing Countries," Books, Edward Elgar Publishing, number 13208.
- Showers, Kate B., 2002. "Water Scarcity and Urban Africa: An Overview of Urban-Rural Water Linkages," World Development, Elsevier, vol. 30(4), pages 621-648, April.
- Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, December.
- D. McFadden & J. Hausman, 1981.
"Specification Tests for the Multinominal Logit Model,"
292, Massachusetts Institute of Technology (MIT), Department of Economics.
- Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
- Desvousges, William H. & Smith, V. Kerry & Fisher, Ann, 1987. "Option price estimates for water quality improvements: A contingent valuation study for the monongahela river," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 248-267, September.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
- Birol, Ekin & Koundouri, Phoebe & Kountouris, Yiannis, 2010.
"Assessing the economic viability of alternative water resources in water-scarce regions: Combining economic valuation, cost-benefit analysis and discounting,"
Elsevier, vol. 69(4), pages 839-847, February.
- Birol, Ekin & Koundouri, Phoebe & Kountouris, Yiannis, 2009. "Assessing the economic viability of alternative water resources in water-scarce regions: Combining economic valuation, cost-benefit analysis and discounting," IFPRI discussion papers 908, International Food Policy Research Institute (IFPRI).
- Ekin Birol & Nick Hanley & Phoebe Koundouri & Yiannis Kountouris, 2007. "The optimal management of wetlands: quantifying trade-offs between flood risks, recreation and biodiversity conservation," Environmental Economy and Policy Research Working Papers 28.2007, University of Cambridge, Department of Land Economics, revised 2007.
- Nick Hanley & Sergio Colombo & Dugald Tinch & Andrew Black & Ashar Aftab, 2006. "Estimating the benefits of water quality improvements under the Water Framework Directive: are benefits transferable?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 391-413, September.
- Barton, David N., 2002. "The transferability of benefit transfer: contingent valuation of water quality improvements in Costa Rica," Ecological Economics, Elsevier, vol. 42(1-2), pages 147-164, August.
- Wang, Hua, 2002. "Pollution regulation and abatement efforts: evidence from China," Ecological Economics, Elsevier, vol. 41(1), pages 85-94, April.
- David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
- 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.
- Hope, R.A., 2006. "Evaluating water policy scenarios against the priorities of the rural poor," World Development, Elsevier, vol. 34(1), pages 167-179, January.
- De Groote, Hugo & Kimenju, Simon Chege, 2008. "Comparing consumer preferences for color and nutritional quality in maize: Application of a semi-double-bound logistic model on urban consumers in Kenya," Food Policy, Elsevier, vol. 33(4), pages 362-370, August.
When requesting a correction, please mention this item's handle: RePEc:eab:develo:23062. 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: (Shiro Armstrong)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.