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Economic evaluation of bottled water consumption as an averting means: evidence from a hedonic price analysis

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  • Senhui He
  • Jeffrey Jordan
  • Krishna Paudel

Abstract

This study alerts researchers and policy makers to the importance of the price effect of bottle size in an economic evaluation of using bottled water as a means to avoid health risks from drinking home tap water. It derived a proxy for the economic value of smaller bottle size by analysing a hedonic price model. The results show that, by not accounting for the economic value of smaller bottle size, we can overstate consumer willingness-to-pay for safer drinking water by more than 100%.

Suggested Citation

  • Senhui He & Jeffrey Jordan & Krishna Paudel, 2008. "Economic evaluation of bottled water consumption as an averting means: evidence from a hedonic price analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 15(5), pages 337-342.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:5:p:337-342
    DOI: 10.1080/13504850600706040
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    Cited by:

    1. Jacobo Núñez & David Martín‐Barroso & Francisco J. Velázquez, 2024. "The hedonic price model for the wine market: A systematic and comparative review of the literature," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 247-264, March.
    2. Leanne S. Fawkes & Thomas J. McDonald & Taehyun Roh & Weihsueh A. Chiu & Robert J. Taylor & Garett T. Sansom, 2022. "A Participatory-Based Research Approach for Assessing Exposure to Lead-Contaminated Drinking Water in the Houston Neighborhood of the Greater Fifth Ward," IJERPH, MDPI, vol. 19(13), pages 1-11, July.
    3. Russell Triplett & Chiradip Chatterjee & Christopher K. Johnson & Parvez Ahmed, 2019. "Perceptions of Quality and Household Water Usage: A Representative Study in Jacksonville, FL," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(2), pages 195-208, May.
    4. Girma Kassie & Awudu Abdulai & Clemens Wollny, 2011. "Heteroscedastic hedonic price model for cattle in the rural markets of central Ethiopia," Applied Economics, Taylor & Francis Journals, vol. 43(24), pages 3459-3464.

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