Water Pollution Averting Expenditures (Case Study of Ahvaz City)

Subject Areas : Environmental Economics

َAmir Hossein Montazer-Hojat ¹ , Mohammad Mohebi ²

1 - Associate Professor, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran. *(Corresponding Author)
2 - Assistant Professor, Faculty of Management and Economics, Hormozgan University, Bandar Abbas, Iran.

Received: 2023-05-09 Accepted : 2023-06-20 Published : 2023-08-23

Keywords: Perceived Risk, mineral water, net and gross averting behavior, Willingness to pay, Tap water,

Abstract :

Background and Objective: Health is one of the issues with a great significance for all members of a society. People always try to protect themselves from harmful effects of pollution; hence, the averting behavior on their part. The present study has tried to estimate the net potable water pollution averting expenditures for citizens of Ahvaz.    Material and Methodology: ­A multinomial logit model was estimated where the water quality parameters (color, odor and taste) were introduced in order to account for both direct desirability and health retention-induced desirability at the same time. In this study, averting behaviors included buying mineral water bottles, commercial treated water containers, and mounting a domestic water treatment system. The respondents’ socioeconomic features were controlled. Awareness of the status quo or a person’s prior experience with tap water pollution was introduced as the perceived risk variable.   Findings: The results showed that the individuals’ willingness to [pay for tap water replacements were 1350, 1105, and 382 thousand Rials for mineral water, commercial treated water containers, and home water treatment systems, respectively. Additionally, it was found that expenses made for mineral and home- treated waters overestimated the averting costs. Figures obtained for annual net averting expenditures were 1890, 1548, and 534 billion Rials for mineral water, commercial treated water, and home- treated water, respectively. Summing up those three figures, the overall net averting expenditures were 3972 billion Rials which indicated the imposition of a huge cost on the society.  Discussion and Conclusion: The obtained figure can be used as a basis in cost-benefit analysis of water treatment plant improvement projects in Ahvaz, as well as payment of environmental subsidies.   

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