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

Author

Listed:
  • Olivier Beaumais

    (LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique)

  • Anne Briand

    (LASTA - Laboratoire d'Analyse des Sociétés, Transformations et Adaptations - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

  • Katrin Millock

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Céline Nauges

    (LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives)

Abstract

We estimate willingness to pay (WTP) for better quality of tap water on a unique cross-section sample from 10 OECD countries. On the pooled sample, households are willing to pay 7.5% of the median annual water bill to improve the tap water quality. The highest relative WTP 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 expected WTP increased with income, education, environmental concern, and health and taste concerns with the tap water.

Suggested Citation

  • Olivier Beaumais & Anne Briand & Katrin Millock & Céline Nauges, 2020. "What are Households Willing to Pay for Better Tap Water Quality? A Cross-Country Valuation Study," Working Papers hal-02430307, HAL.
    • Handle: RePEc:hal:wpaper:hal-02430307
    DOI: 10.2139/ssrn.2407873
    Note: View the original document on HAL open archive server: https://hal.science/hal-02430307
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    Cited by:

    1. Groothuis, Peter A. & Cockerill, Kristan & Mohr, Tanga McDaniel, 2015. "Water does not flow up hill: determinants of willingness to pay for water conservation measures in the mountains of western North Carolina," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 88-95.
    2. Francesco Jacopo Pintus, 2023. "Valuing drinking water quality after a PFAS contamination event: results from a meta-analysis benefit transfer," "Marco Fanno" Working Papers 0308, Dipartimento di Scienze Economiche "Marco Fanno".
    3. Zawojska, Ewa & Czajkowski, Mikolaj & Giergiczny, Marek, 2018. "Valuing tap water quality improvements using stated preference methods. Does the number of discrete choice options matter?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274019, Agricultural and Applied Economics Association.
    4. Francisco B. Galarza & Max Carbajal & Julio Aguirre, 2022. "Willingness to Pay for Improved Water Service: Evidence from Urban Peru," Working Papers 185, Peruvian Economic Association.
    5. Massarutto, Antonio & Roder, G. & Troiano, S., 2022. "Better safe than sorry? Stated preferences and the precautionary principle for securing drinking water quality in an Italian district," Utilities Policy, Elsevier, vol. 76(C).
    6. Pérez, María & García-Valiñas, María A. & Martínez-Espiñeira, Roberto, 2013. "Responses to changes in domestic water tariff structures: An analysis on household-level data from Granada, Spain," Efficiency Series Papers 2013/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).

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    More about this item

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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