A Toolkit for Assessing Willingness to Pay ... - WaterWiki.net

More documents

Recommendations

Info

28 CHAPTER 2 WILLINGNESS TO PAY It is plausible that the income elasticity changes for households with different levels of income. For instance, a poor family might increase its water consumption more than a wealthy family in response to an increase in the family income. This is because the wealthy family has reached a threshold where it uses the amount of water it wishes to use without considering the price. To benefit from historical data collected in Brno, a model is estimated. To compute the price and income elasticity, it is necessary to know how the respondents will react to an increase in price, other things being equal. Therefore, a demand model including all data collected is estimated. The prefix ln indicates that a logarithmic transformation has been made, b is the price elasticity and g is the income elasticity. eit is the unexplained part. The index i is the household, while index t indicates that there are more observations for each household. The price elasticity is estimated at -0.18, which means that a price increase of 10 per cent results in a 1.8 per cent decrease in water consumption. The income elasticity is estimated at +0.33, which means that an increase of 10 per cent in income results in a 3.3 per cent increase in water consumption. Hence, the water consumption of the respondents is, quite insensitive to price, but the income elasticity is relatively high. The results show that the households are not likely to reduce their water consumption very much in response to an increase in price, but that they will use more water if their income increases. The low sensitivity to price is expected since households in Brno have already ready reduced their consumption to a level that is similar to that of West European cities with low per capita water consumption. 2.6 Conclusions The consumers in Brno are not, in general, dissatisfied with either the cold water quality or the standard of wastewater treatment. However, two thirds of the consumers buy bottled water. More than three-quarters of the interviewed respondents are not willing to pay higher tariffs to improve quality. 17% prefer lower quality of service combined with lower tariffs. However, the stated preference analysis reveals a willingness to pay for improving the water quality and wastewater standard. The willingness to pay to avoid a worsening of the present water quality is higher than the willingness to pay for an improvement. In particular, this applies to the taste. Also, consumers are willing to pay for better wastewater treatment in order to improve the environment. The willingness to pay varies between different gender, age, and income groups. Consumers in the low income group are willing to pay less than other consumers, and women are willing to pay more than men are. The group of consumers younger than 35 years are willing to pay more for an improvement of the wastewater treatment leading to a better environment than older consumers are.
29 The following policy guidelines can be derived from the analysis: • Environment is an argument for price increases (for wastewater services); • To make wastewater treatment meet the EU demand is a good argument; • Tap water as good as bottled water is also an argument that is appreciated: • Different information approaches for different age groups; • Avoid chlorine taste is very important argument for price increases; and • Metering will not increase WTP. 2.7 Lessons learnt on method Qualitative research • The in-depth interviews worked well and did provide valuable information about the water services in Brno. Quantitative research • The respondents in the qualitative work reveal somewhat higher willingness to pay than found in the quantitative research. • It is possible to find willingness to pay for environmental improvements, and the connection between wastewater treatment and environment was well understood. • It is possible to estimate elasticities from survey data by collecting the most important determinants for water demand. This includes water consumption, income and number of persons in household.
Page 1 and 2:
Ministry of the Environment This re
Page 3 and 4:
Water Prices in CEE and CIS Countri
Page 5 and 6:
TABLE OF APPENDICES APPENDIX 1: APP
Page 7 and 8:
Page 9 and 10:
CONTENTS & TABLE OF APPENDICES CONT
Page 11 and 12:
CHAPTER 1 INTRODUCTION 1 Background
Page 13 and 14:
CHAPTER 2 EXECUTIVE SUMMARY 3 3 The
Page 15 and 16:
CHAPTER 3 TECHNICAL PROFILE 5 5 The
Page 17 and 18:
7 3.6 Staffing and Staff Efficiency
Page 19 and 20:
CHAPTER 4 INSTITUTIONAL FRAMEWORK A
Page 21 and 22:
11 4.3.2 The Political Parties Ther
Page 23 and 24:
1 4 See e.g. 1998 PWiK annual repor
Page 25 and 26:
CHAPTER 5 WILLINGNESS TO PAY 15 5.1
Page 27 and 28:
17 The willingness to pay is examin
Page 29 and 30:
19 Respondents were selected by ran
Page 31 and 32:
21 Figure 5.1: Age distribution of
Page 33 and 34:
23 Figure 5.3: Household income dis
Page 35 and 36:
25 Figure 5.5: Household payments f
Page 37 and 38:
27 Figure 5.7: Rating of services i
Page 39 and 40:
29 Figure 5.9: Drink tap water stra
Page 41 and 42:
31 Figure 5.11: Satisfaction with i
Page 43 and 44:
33 Colour and smell are included in
Page 45 and 46:
35 Figure 5.15: Average willingness
Page 47 and 48: 5 The willingness to pay for a less
Page 49 and 50: 39 The results from the Ankieter re
Page 51 and 52: CHAPTER 6 DEMAND FOR WATER AND AFFO
Page 53 and 54: 43 Statistical data are usually ava
Page 55 and 56: Appendix 13.1: SP Questionnaire 45
Page 58 and 59: 48 APPENDIX 13.1: QUESTIONNAIRE
Page 60: 50 APPENDIX 13.1: QUESTIONNAIRE
Page 63 and 64: Appendix 13.2: Statistical Tables 5
Page 65: Appendix 13.4: List of Persons Met
Page 68 and 69: This case study, prepared by COWI,
Page 70 and 71: ABBREVIATIONS AND ACRONYMS BVK CCTV
Page 72 and 73: 2 CHAPTER 1 INTRODUCTION The Brno c
Page 74 and 75: 4 CHAPTER 2 WILLINGNESS TO PAY 2.2.
Page 76 and 77: 6 CHAPTER 2 WILLINGNESS TO PAY Thre
Page 78 and 79: 8 CHAPTER 2 WILLINGNESS TO PAY Most
Page 80 and 81: 10 CHAPTER 2 WILLINGNESS TO PAY Thr
Page 82 and 83: 12 CHAPTER 2 WILLINGNESS TO PAY Fig
Page 86 and 87: 16 CHAPTER 2 WILLINGNESS TO PAY Tab
Page 90 and 91: 20 CHAPTER 2 WILLINGNESS TO PAY In
Page 94 and 95: 24 CHAPTER 2 WILLINGNESS TO PAY The
Page 96 and 97: 26 CHAPTER 2 WILLINGNESS TO PAY The
Page 101 and 102: CHAPTER 3 TECHNICAL PROFILE 31 The
Page 103: 33 These indicators are comparable
Page 106 and 107: 36 CHAPTER 4 INSTITUTIONAL FRAMEWOR
Page 110 and 111: 1 The actual results are provided i
Page 112 and 113: 42 There is a marked difference bet
Page 115 and 116: Water Prices in CEE and CIS Countri
Page 117 and 118: CONTENTS & TABLE OF APPENDICES CONT
Page 119 and 120: CHAPTER 1 INTRODUCTION 1 Project ob
Page 121: 3 Structure of this working paper T
Page 125 and 126: CHAPTER 3 TECHNICAL PROFILE 7 The o
Page 127 and 128: 9 All figures concerning water prod
Page 129: 11 Furthermore, the report from Kr
Page 132 and 133: 2 It is not clear from the text whe
Page 140 and 141: 22 CHAPTER 5 WILLINGNESS TO PAY •
Page 142 and 143: 24 CHAPTER 5 WILLINGNESS TO PAY Res
Page 144 and 145: 26 CHAPTER 5 WILLINGNESS TO PAY Fiv
Page 148 and 149:
30 CHAPTER 5 WILLINGNESS TO PAY Fig
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
36 CHAPTER 5 WILLINGNESS TO PAY the
Page 156 and 157:
38 CHAPTER 5 WILLINGNESS TO PAY Two
Page 158 and 159:
40 CHAPTER 5 WILLINGNESS TO PAY Con
Page 160 and 161:
42 CHAPTER 5 WILLINGNESS TO PAY For
Page 163 and 164:
CHAPTER 6 ABILITY TO PAY ISSUES 45
Page 165 and 166:
47 which is less than half the aver
Page 167 and 168:
49 Almost 10% of the households hav
Page 169 and 170:
CHAPTER 7 CONSEQUENCES FOR METHODOL
Page 171 and 172:
Appendix 15.2: List of Privileged G
Page 174:
56 APPENDIX 15.3: SP QUESTIONNAIRE
Page 181:
Page 185:
CHAPTER 1 INTRODUCTION 1 This paper
Page 188 and 189:
4 CHAPTER 2 UKMERGE, LITHUANIA 2.2
Page 190 and 191:
6 CHAPTER 2 UKMERGE, LITHUANIA 2.3
Page 193 and 194:
CHAPTER 3 BOROVICHI, RUSSIA 9 Borov
Page 195 and 196:
11 The average level of income is l
Page 197:
Appendix 16.1: Literature Used 13 C
show all

A Toolkit for Assessing Willingness to Pay ... - WaterWiki.net

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?