Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias

Brox, James A.; Kumar, Ramesh; Stollery, Kenneth R.

doi:10.1111/1467-8276.00130

Cited by 52 publications

(55 citation statements)

References 36 publications

(20 reference statements)

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“…Our expectation is that there will be a strong association with WTP, at least for the psychometric variables, in light of previous research, which has found that the location of hazards in psychometric space is highly correlated with the desire for strict regulation . Other research has shown that determinants of WTP for risk management programs include not only level of perceived risk, but also demographic variables such as household income, presence of children within the home, education, and identification with the issue …”

Section: Introductionmentioning

confidence: 85%

Psychometric and Demographic Predictors of the Perceived Risk of Terrorist Threats and the Willingness to Pay for Terrorism Risk Management Programs

et al. 2013

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A 2009 national telephone survey of 924 U.S. adults assessed perceptions of terrorism and homeland security issues. Respondents rated severity of effects, level of understanding, number affected, and likelihood of four terrorist threats: poisoned water supply; explosion of a small nuclear device in a major U.S. city; an airplane attack similar to 9/11; and explosion of a bomb in a building, train, subway, or highway. Respondents rated perceived risk and willingness to pay (WTP) for dealing with each threat. Demographic, attitudinal, and party affiliation data were collected. Respondents rated bomb as highest in perceived risk but gave the highest WTP ratings to nuclear device. For both perceived risk and WTP, psychometric variables were far stronger predictors than were demographic ones. OLS regression analyses using both types of variables to predict perceived risk found only two significant demographic predictors for any threat--Democrat (a negative predictor for bomb) and white male (a significant positive predictor for airline attack). In contrast, among psychometric variables, severity, number affected, and likelihood were predictors of all four threats and level of understanding was a predictor for one. For WTP, education was a negative predictor for three threats; no other demographic variables were significant predictors for any threat. Among psychometric variables, perceived risk and number affected were positive predictors of WTP for all four threats; severity and likelihood were predictors for three; level of understanding was a significant predictor for two.

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Section: Introductionmentioning

confidence: 85%

Psychometric and Demographic Predictors of the Perceived Risk of Terrorist Threats and the Willingness to Pay for Terrorism Risk Management Programs

et al. 2013

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“…Some members of the community may therefore consider reporting a positive WTP as a disincentive to the government to provide fish solar tent dryers for free. There was also a possibility of selection problem as has been pointed out in other CVM studies (Brox et al 2003). Selection would exist if individuals with particular characteristics report zero willingness to pay.…”

Section: Model Selection and Estimationmentioning

confidence: 95%

Gender differences in willingness to pay for capital-intensive agricultural technologies: the case of fish solar tent dryers in Malawi

et al. 2018

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Gender differences in fish processors' willingness to pay for a group-owned fish solar tent dryer (FSTD) are being assessed by using the double hurdle model. Willingness to pay (WTP) responses from 382 randomly selected fish processors were elicited through a bidding game in a contingent valuation method. The findings show that the average probability that fish processors will be willing to pay was 74% (76% for females and 72% for males). Furthermore, the average level of WTP was US$29.45 (US$26.46 for females and US$33.51 for males). Females have a lower level of WTP than men because of their low endowment with assets that can assist them such as education, access to markets and productive assets. In view of these findings, the paper concludes that female fish processors have a higher probability of being willing to pay than male fish processors, but the levels of WTP are lower for female processors. The study suggests that when organising the community into cooperatives is possible, WTP for capital-intensive technologies can be assessed as contributions of individuals to the total cost of the technologies although the common property characteristic is suspected to lower the level of willingness to pay.

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“…Respondents utilize the established hypothetical market to state their WTP or vote for or against the new policy at a particular price. For example, Brox et al [4] estimated the WTP for residential water quality improvements in the Grand River watershed in the province of Ontario, Canada. Koss and Khawaja [5] and Barton [6] employed an identical CV method to derive WTP.…”

Section: Introductionmentioning

confidence: 99%

“…Even though there are many studies on improvements in water quality-for example, Atkins et al [7], Barton [6], Brox et al [4], Gupta and Mythili [8], and Hayes et al [9]-few studies analyze consumers' preferences for tap water quality in Korea. The level of WTP can be differentiated among regions.…”

Section: Introductionmentioning

confidence: 99%

Measuring the Willingness to Pay for Tap Water Quality Improvements: Results of a Contingent Valuation Survey in Pusan

Kwak

Yoo

Kim

2013

Water

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With increasing concern regarding health, people have developed an interest in the safety of drinking water. In this study, we attempt to measure the economic benefits of tap water quality improvement through a case study on Pusan, the second largest city in Korea. To this end, we use a scenario that the government plans to implement a new project of improving water quality and apply the contingent valuation (CV) method. A one-and-one-half bounded dichotomous choice question (OOHBDC) format is employed to reduce the potential for response bias in multiple-bound formats such as the double-bound model, while maintaining much of the efficiency. Moreover, we employ the spike model to deal with zero willingness to pay (WTP) responses from the OOHBDC CV survey. The CV survey of 400 randomly selected households was rigorously designed to comply with the guidelines for best-practice CV studies using person-to-person interviews. From the spike OOHBDC CV model, the mean WTP for the improvement was estimated to be KRW 2,124 (USD 2.2), on average, per household, per month. The value amounts to 36.6% of monthly water bill and 20.2% of production costs of water. The conventional OOHBDC model produces statistically insignificant mean WTP estimate and even negative value, but the OOHBDC spike model OPEN ACCESSWater 2013, 5 1639 gives us statistically significant mean WTP estimate and fitted our data well. The WTP value to Pusan residents can be computed to be KRW 31.2 billion (USD 32.1 million) per year.

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Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias

Cited by 52 publications

References 36 publications

Psychometric and Demographic Predictors of the Perceived Risk of Terrorist Threats and the Willingness to Pay for Terrorism Risk Management Programs

Psychometric and Demographic Predictors of the Perceived Risk of Terrorist Threats and the Willingness to Pay for Terrorism Risk Management Programs

Gender differences in willingness to pay for capital-intensive agricultural technologies: the case of fish solar tent dryers in Malawi

Measuring the Willingness to Pay for Tap Water Quality Improvements: Results of a Contingent Valuation Survey in Pusan

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