FEEM working papers "Note di lavoro" series
2014 .024

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


Authors: Olvier Beaumais, Anne Briand, Katrin Millock, Céline Nauges
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Keywords: Contingent Valuation, Household Data, Interval Model, Water Quality, Willingness to Pay
JEL n.: C24, D12, Q25, Q51

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.

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Suggested citation: Beaumais, o., A. Briand, K. Millock, C. Nauges, (2014), 'What are Households Willing to Pay for Better Tap Water Quality? A Cross-Country Valuation Study', Nota di Lavoro 24.2014, Milan, Italy: Fondazione Eni Enrico Mattei.

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