Estimation of willingness to pay for wastewater treatment

Genius, Margarita; Manioudaki, Maria; Mokas, E.; Pantagakis, Emmanouil; Tampakakis, D.; Tsagarakis, Konstantinos P.

doi:10.2166/ws.2005.0055

Cited by 25 publications

(21 citation statements)

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“…(3 responses), "European funds may be used for this purpose" (1 response), "I think an upgrade of the existing wastewater treatment plant is necessary but not within the urban park" (2 responses) and "There are already cycle paths that are not used" (1 response). Similar responses were found in [10,12,34]. As already highlighted, there were 96 (real zero) people who clearly disagreed with this kind of project and declared themselves unwilling to pay.…”

Section: Estimation Of Willingness To Paysupporting

confidence: 77%

Willingness to Pay for Recreational Benefit Evaluation in a Wastewater Reuse Project. Analysis of a Case Study

Verlicchi

Aukidy

Zanni

2018

Water

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The study deals with the evaluation of the recreational benefit of a reclaimed water reuse project in the municipality of Ferrara, north Italy, by means of the contingent valuation method. It also provides an analysis of the public acceptance of the project, determined by eliciting the willingness of the local people to contribute to the realization of this project in monetary terms (their willingness to pay). The project involves the upgrade of the existing wastewater treatment plant by conventional (rapid sand filters) and natural (constructed wetland) treatments. The latter will be constructed within the urban park surrounding the wastewater treatment plant area and will combine the objectives of both wastewater treatment with recreational services, since they will create equipped green areas open to the public. The study is based on the answers provided by 400 respondents, who are residents in the four districts of the municipality of Ferrara. It emerges that willingness to pay is strongly influenced by the socio-economic characteristics of the respondents, with an amount on average of 48 €/family.In evaluating the feasibility of a reuse project of reclaimed water, attention is generally devoted to the technical aspects concerning the treatment train able to guarantee respect of the local legal requirements for the final effluent in relation to its purpose (civil, rural, and industrial direct reuse) [6]. However, efforts to reduce and optimize the investment and operation and maintenance costs must also be made. In some cases, a cost-benefit analysis of the project is also carried out [4,7-9] that aims to evaluate the different benefits related to the project itself. In this context, it is worth noting that recreational benefits could become decisive in the economic feasibility of a project [4].Moreover, the participation of the local population in the decision-making process and in questions concerning public issues increases awareness of the problems under discussion and could also be of benefit in terms of acceptance of the project itself. As remarked by Tziakis et al. [10], the construction/upgrade of a wastewater treatment plant must be "approved of" by the residents, who should also be willing to pay for its construction and operation.In this context, in order to evaluate the economic feasibility of the projects, the contingent valuation method (CVM) can be effectively used to enhance the non-market benefits associated with this type of project, for example for recreational and landscape benefits, in order to estimate the total economic value of the investments. It allows the value of non-market goods and services to be determined and is the most widely-used method in evaluating environmental assets by surveying people's willingness to pay for such an asset and/or what they would be willing to receive by way of compensation in order to tolerate such a cost; i.e., preservation of a natural park, or the upgrade of a wastewater treatment plant [11].Numerous studies have been published dealing with the appl...

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Section: Estimation Of Willingness To Paysupporting

confidence: 77%

Willingness to Pay for Recreational Benefit Evaluation in a Wastewater Reuse Project. Analysis of a Case Study

Verlicchi

Aukidy

Zanni

2018

Water

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“…Kontogianni et al (2003) used a CVM study to estimate the WTP for the water quality improvements that would come as a result of an appropriate wastewater treatment. Genius et al (2005), examine WTP for an improved environment resulting from the construction of a wastewater treatment facility. Finally, Genius and Tsagarakis (2006) have studied the WTP of Heraklion residents (another Greek town) for the implementation of projects that will lead to a continuous water supply.…”

Section: Contingent Valuation For Water Supply and Water Quality Projmentioning

confidence: 99%

Evaluating Consumers’ Willingness to Pay for Improved Potable Water Quality and Quantity

Genius

Hatzaki

Kouromichelaki

et al. 2008

Water Resour Manage

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The present research is about water supply shortages and low drinking water quality in the Municipality of Rethymno during peak water demand periods. More specifically, the aim of this work is to elicit Rethymno residents' willingness to pay (WTP), by applying the CVM methodology, as the percent over their water bill, for the completion of future projects that the Municipal Enterprise for Water Supply and Sewerage (MEWSS) of Rethymno intends to implement to avoid shortages and improve tap water quality. The current contingent valuation study is performed based on data collected through personal interviews where respondents are asked about their WTP for a given improvement in the water supply. The results point out that female respondents, households with high income, with children, and households which do not use tap water for drinking, are on average willing to pay more. The mean WTP for these future projects was estimated to be 10.64 € (17.67% of the average bill). The mean WTP amount can be useful to decision makers undertaking an environmental cost benefit analysis, where full cost should be recovered. Interviewing people in the context of a valuation scenario, informs them for improvements that will be undertaken from the new projects under consideration and at the same time involves them as users in the decision making process.

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“…Similarly, Del Saz-Salazar et al (2015) estimated a US$1.47/month WTP for homes in Sucre, Bolivia, which amounts to 12% of the water bill. Throughout the literature, CV has been used to explore measures to improve access (Venkatachalam 2006;Wang et al 2010;Lee et al 2013), continuity of service (Hensher et al 2006;Genius et al 2008), residual water treatment (Kontogianni et al 2003;Genius et al 2005) and drinking water quality (Nallathiga 2009;Bilgic 2010;Polyzou et al 2011).…”

Section: Introductionmentioning

confidence: 99%

Household’s Perception of Water Quality and Willingness to Pay for Clean Water in Mexico City

2017

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Abstract:A 2011 survey of Mexico City's households revealed that families prefer alternative sources of drinking water instead of relying in the city's quality supply services. These include the purchase of bottled water, installation of filtration devices, and other means of water purification. The demand for better water quality was tested by estimating the household's willingness to pay (WTP), using a contingency valuation (CV) experiment through an open-format questionnaire and by estimating a censored econometric (Tobit) model. The econometric study revealed that the WTP for better water quality is influenced by variables related with distrust of the water quality provided by the City and the organoleptic characteristics of the water supply, as well as spending on bottled water or water purification technologies. The average WTP surcharge for better potable water quality is US$3.1 or 4.7% of the bimonthly water bill, which is about 0.22% of the average family income in Mexico City. The percentage of WTP to income is bigger in poor families. This suggests that improving water quality is of greater importance for lower income families. Findings are consistent with previous studies that estimated the WTP for improvements in the services that supply water to households in the city. These include reduction of inefficiency and intermittency of the supply along with water quality, improve measuring water meters, reducing the obsolescence of the infrastructure and increasing adequate maintenance. Our research is the first to estimate the WTP for better water quality in Mexico City and constitutes a reference point for those that address the problem of water quality and its impact on the welfare and income of families.

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Estimation of willingness to pay for wastewater treatment

Cited by 25 publications

References 0 publications

Willingness to Pay for Recreational Benefit Evaluation in a Wastewater Reuse Project. Analysis of a Case Study

Willingness to Pay for Recreational Benefit Evaluation in a Wastewater Reuse Project. Analysis of a Case Study

Evaluating Consumers’ Willingness to Pay for Improved Potable Water Quality and Quantity

Household’s Perception of Water Quality and Willingness to Pay for Clean Water in Mexico City

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