Contingent Valuation of Drinking Water: A Case Study
Subject Areas : Labor and Demographic Economics
Keywords: Contingent Valuation, Drinking Water Quality, Willing to Pay, Embedding Effect,
Abstract :
Abstract By using contingent valuation, this research examines people willing to pay in Polesefid of mazandaran province also, based on the estimation of Logit model we are going to determine factors such as income, ago, number of small children and level of education affecting the willing to pay. The data are collected through a survey questionnaire and personal interviewing with 180 households in Polesefid. Also, according a pretest, the embedding effect is examined. Results indicate that 83 percent of households have a willing to pay for improving the quality of city water. In particular, average willing to pay for the save water is about 32000 Rials per household. Also by this research of the variables such as worrying about the quality of drinking water. Income and age have a positive and significant effect on the willing to pay. since, average values for willingness to pay in the pretest study is 32000 it seems that the embedding effect is minimum and the willing to pay has the minimum biased.
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