Climate Change and the Willingness to Pay to Reduce Ecological and Health Risks from Wastewater Flooding in Urban Centers and the Environment
Climate change scenarios predict an increase of extreme rain events, which will increase the risk of wastewater flooding and of missing legal water quality targets. This study elicits the willingness to pay to reduce ecological and health risks from combined sewer overflows in rivers and lakes, and wastewater flooding of residential and commercial zones under the uncertainty of climate change. We implement a discrete choice experiment on a large representative sample of the Swiss population. Swiss households strongly value the protection of water bodies, and mostly, the avoidance of high ecological risks and health risks for children related to combined sewer overflows in rivers and lakes. Our findings also show that climate change perception has a significant effect on the willingness to pay to reduce these risks. These results are important to support policy makers’ decisions on how to deal with emerging risks of climate change in the water sector and where to set priorities.
|Date of creation:||Jan 2013|
|Date of revision:|
|Publication status:||Published in Ecological Economics 98, February 2014: 1-10.|
|Contact details of provider:|| Postal: |
Web page: http://www.dse.univr.it
More information through EDIRC
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.:
- Vanessa E. Daniel & Raymond J.G.M. Florax & Piet Rietveld, 2007.
"Flooding Risk And Housing Values: An Economic Assessment Of Environmental Hazard,"
07-02, Purdue University, College of Agriculture, Department of Agricultural Economics.
- Daniel, Vanessa E. & Florax, Raymond J.G.M. & Rietveld, Piet, 2009. "Flooding risk and housing values: An economic assessment of environmental hazard," Ecological Economics, Elsevier, vol. 69(2), pages 355-365, December.
- Ananda, Jayanath & Herath, Gamini, 2005. "Evaluating public risk preferences in forest land-use choices using multi-attribute utility theory," Ecological Economics, Elsevier, vol. 55(3), pages 408-419, November.
- Glenk, Klaus & Fischer, Anke, 2010. "Insurance, prevention or just wait and see? Public preferences for water management strategies in the context of climate change," Ecological Economics, Elsevier, vol. 69(11), pages 2279-2291, September.
- Anna Alberini & Stefania Tonin & Margherita Turvani & Aline Chiabai, 2007.
"Paying for permanence: Public preferences for contaminated site cleanup,"
Journal of Risk and Uncertainty,
Springer, vol. 34(2), pages 155-178, April.
- Anna Alberini & Stefania Tonin & Margherita Turvani & Aline Chiabai, 2006. "Paying for Permanence: Public Preferences for Contaminated Site Cleanup," Working Papers 2006.113, Fondazione Eni Enrico Mattei.
- Jones, Nikoleta & Sophoulis, Costas M. & Malesios, Chrisovaladis, 2008. "Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2478-2491, December.
- Corso, Phaedra S & Hammitt, James K & Graham, John D, 2001. " Valuing Mortality-Risk Reduction: Using Visual Aids to Improve the Validity of Contingent Valuation," Journal of Risk and Uncertainty, Springer, vol. 23(2), pages 165-84, September.
- 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 1219-40, September.
- W. J. Wouter Botzen & Jeroen C. J. M. Van Den Bergh, 2012. "Monetary Valuation Of Insurance Against Flood Risk Under Climate Change," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 1005-1026, 08.
- Ronald C. Griffin & James W. Mjelde, 2000. "Valuing Water Supply Reliability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 414-426.
- Kunreuther, Howard & Novemsky, Nathan & Kahneman, Daniel, 2001. " Making Low Probabilities Useful," Journal of Risk and Uncertainty, Springer, vol. 23(2), pages 103-20, September.
- Dickie, Mark & Gerking, Shelby, 2007. "Altruism and environmental risks to health of parents and their children," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 323-341, May.
- Bosworth, Ryan & Cameron, Trudy Ann & DeShazo, J.R., 2009. "Demand for environmental policies to improve health: Evaluating community-level policy scenarios," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 293-308, May.
- 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.
- Moreno-Sanchez, Rocio & Maldonado, Jorge Higinio & Wunder, Sven & Borda-Almanza, Carlos, 2012. "Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes," Ecological Economics, Elsevier, vol. 75(C), pages 126-134.
- Roberts, David C. & Boyer, Tracy A. & Lusk, Jayson L., 2008. "Preferences for environmental quality under uncertainty," Ecological Economics, Elsevier, vol. 66(4), pages 584-593, July.
- Richard Carson & Jordan Louviere, 2011. "A Common Nomenclature for Stated Preference Elicitation Approaches," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(4), pages 539-559, August.
- Adamowicz, Wiktor & Dupont, Diane & Krupnick, Alan & Zhang, Jing, 2011. "Valuation of cancer and microbial disease risk reductions in municipal drinking water: An analysis of risk context using multiple valuation methods," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 213-226, March.
- Botzen, W.J.W. & Aerts, J.C.J.H. & van den Bergh, J.C.J.M., 2009. "Willingness of homeowners to mitigate climate risk through insurance," Ecological Economics, Elsevier, vol. 68(8-9), pages 2265-2277, June.
- W. Viscusi & Joel Huber & Jason Bell, 2008. "The Economic Value of Water Quality," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(2), pages 169-187, October.
- Brouwer, Roy, 2006. "Do stated preference methods stand the test of time? A test of the stability of contingent values and models for health risks when facing an extreme event," Ecological Economics, Elsevier, vol. 60(2), pages 399-406, December.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Dupont, Diane P. & Bateman, Ian J., 2012. "Political affiliation and willingness to pay: An examination of the nature of benefits and means of provision," Ecological Economics, Elsevier, vol. 75(C), pages 43-51.
- repec:ner:tilbur:urn:nbn:nl:ui:12-4628498 is not listed on IDEAS
- Brouwer, Roy & Akter, Sonia & Brander, Luke & Haque, Enamul, 2009. "Economic valuation of flood risk exposure and reduction in a severely flood prone developing country," Environment and Development Economics, Cambridge University Press, vol. 14(03), pages 397-417, June.
- Klaus Glenk & Sergio Colombo, 2011. "How Sure Can You Be? A Framework for Considering Delivery Uncertainty in Benefit Assessments Based on Stated Preference Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(1), pages 25-46, 02.
- Jorgensen, Bradley S. & Syme, Geoffrey J., 2000. "Protest responses and willingness to pay: attitude toward paying for stormwater pollution abatement," Ecological Economics, Elsevier, vol. 33(2), pages 251-265, May.
- 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, Springer, vol. 17(5), pages 317-336, October.
- Neumayer, Eric, 2004. "The environment, left-wing political orientation and ecological economics," Ecological Economics, Elsevier, vol. 51(3-4), pages 167-175, December.
- David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December.
- Tait, Peter & Baskaran, Ramesh & Cullen, Ross & Bicknell, Kathryn, 2012. "Nonmarket valuation of water quality: Addressing spatially heterogeneous preferences using GIS and a random parameter logit model," Ecological Economics, Elsevier, vol. 75(C), pages 15-21.
- Botzen, W.J.W. & van den Bergh, J.C.J.M., 2012. "Risk attitudes to low-probability climate change risks: WTP for flood insurance," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 151-166.
- Loomis, John & Kent, Paula & Strange, Liz & Fausch, Kurt & Covich, Alan, 2000. "Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey," Ecological Economics, Elsevier, vol. 33(1), pages 103-117, April.
- Thijs Dekker & Roy Brouwer & Marjan Hofkes & Klaus Moeltner, 2011. "The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(4), pages 597-624, August.
When requesting a correction, please mention this item's handle: RePEc:ver:wpaper:01/2013. 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: (Michael Reiter)
If references are entirely missing, you can add them using this form.