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What are Households Willing to Pay for Better Tap Water Quality ? A Cross-Country Valuation Study

  • Olivier Beaumais

    ()

    (CARE - Centre d'analyse et de recherche en économie - Université de Rouen : EA2260)

  • Anne Briand

    ()

    (CARE - Centre d'analyse et de recherche en économie - Université de Rouen : EA2260)

  • Katrin Millock

    ()

    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Céline Nauges

    ()

    (LERNA-INRA - Toulouse School of Economics)

Using a unique cross-section sample from 10 OECD countries, we estimate willingness to pay for better quality of tap water. On the pooled sample, households are only willing to pay 7.5% of the median annual water bill to improve the quality of tap water. The highest relative willingness to pay for better tap water quality was found in the countries with the highest percentage of respondents being unsatisfied with tap water quality because of health concerns. The median willingness to pay in Mexico, Korea and Italy was estimated at 10.1%, 6.4% and 8.8% of the median water bill. The marginal willingness to pay increased with income, education, environmental concern, trust in information from government, and specific concerns with water quality.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00497453.

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Date of creation: Jun 2010
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Handle: RePEc:hal:cesptp:halshs-00497453
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00497453
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  1. Mi-Jung Um & Seung-Jun Kwak & Tai-Yoo Kim, 2002. "Estimating Willingness to Pay for Improved Drinking Water Quality Using Averting Behavior Method with Perception Measure," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 21(3), pages 285-300, March.
  2. Marta-Pedroso, Cristina & Freitas, Helena & Domingos, Tiago, 2007. "Testing for the survey mode effect on contingent valuation data quality: A case study of web based versus in-person interviews," Ecological Economics, Elsevier, vol. 62(3-4), pages 388-398, May.
  3. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank C. & Silva, Carol L. & Weimer, David L., 2004. "Information and effort in contingent valuation surveys: application to global climate change using national internet samples," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 331-363, March.
  4. Søren Olsen, 2009. "Choosing Between Internet and Mail Survey Modes for Choice Experiment Surveys Considering Non-Market Goods," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(4), pages 591-610, December.
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