THE OPPORTUNITY COST OF TIME AND AVERTING EXPENDITURES FOR SAFE DRINKING WATER¹

Abstract

A survey of individuals during a Giardia contamination incident provided data to calculate the cost of boiling, hauling, or purchasing water to avoid infection. Three different approaches to the valuation of time were used to assess the implications of the opportunity cost of time for the measurement of averting costs. Mean monthly household averting costs were $33.47 using family income to value time, $13.07 using the minimum wage to value time, and $5.60 using zero opportunity cost of time. Comparisons of the mean costs for different sources and household characteristics indicated the value of time from family income was too high and that the other methods of valuing time were superior.

Risk perception, choice of drinking water and water treatment: evidence from Kenyan towns

“…It is likely that what affects households' averting behaviour is the risk they themselves perceive rather than some objective measure unknown to the household or the researcher. Therefore, once it is clear how risk perceptions influence water treatment (Abdalla et al 1992;Collins and Steinbeck 1993;Laughland et al 1993;Whitehead et al 1998) do not specifically incorporate perceived risks.…”

A Little Knowledge…: Household Water Quality Investment in the Annapolis Valley

“…Alternatively, as suggested by Laughland et al (1993), higher education levels may indicate that household members have less time to attend to water treatment activities. Among the more surprising results was the effect of education.…”

Household’s Willingness to Pay for Safe Drinking Water: A Case Study of Abbottabad District

“…The total household cost related to organic contaminants was $109 per month. Laughland, et al (1993) estimate averting expenditures for households in Milesburg and Boggs Township, Pennsylvania who experience a surface water contamination episode. During the three-month boil water advisory most (91 percent) of the respondents boiled, hauled, or purchased water.…”