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Willingness to Pay and Willingness to Accept Compensation for Changes in Urban Water Customer Service Standards
Citation
Hatton MacDonald, D and Morrison, MD and Barnes, MB, Willingness to Pay and Willingness to Accept Compensation for Changes in Urban Water Customer Service Standards, Water Resources Management, 24, (12) pp. 3145-3158. ISSN 0920-4741 (2010) [Refereed Article]
Copyright Statement
Copyright 2010 Springer Science+Business Media B.V.
DOI: doi:10.1007/s11269-010-9599-7
Abstract
In this paper, we explore the use of choice modelling for obtaining implicit
prices for attributes associated with changes in the reliability of household water
services. While not often estimated in practice, the collection of information about
willingness to accept compensation is relevant for utilities as customers often have
implicit or explicit property rights for particular levels of customer service. Given
ageing infrastructure in many cities, maintaining customer service standards requires
large capital expenditures. It may be more economically efficient to allow standards
to decline in some areas and compensate consumers. Therefore it is useful to
understand the value of attributes of water service provision using willingness to
accept and how this differs from willingness to pay. We therefore estimate both
willingness to accept and willingness to pay measures, and find that respondents
value a larger range of attributes using the willingness to accept approach.
Item Details
Item Type: | Refereed Article |
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Keywords: | Choice modelling · Price of water · Urban water · Willingness to accept |
Research Division: | Economics |
Research Group: | Applied economics |
Research Field: | Environment and resource economics |
Objective Division: | Environmental Policy, Climate Change and Natural Hazards |
Objective Group: | Environmental policy, legislation and standards |
Objective Field: | Environmental protection frameworks (incl. economic incentives) |
UTAS Author: | Hatton MacDonald, D (Professor Darla Hatton MacDonald) |
ID Code: | 103263 |
Year Published: | 2010 |
Web of Science® Times Cited: | 36 |
Deposited By: | Faculty of Business |
Deposited On: | 2015-09-30 |
Last Modified: | 2015-11-05 |
Downloads: | 0 |
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