Work

Assessing water company customer preferences and willingness to pay for service improvements: A stated choice analysis

Year: 2005

Type: article

Abstract: Water and sewerage companies are regional monopolies in the UK. A government agency regulates these companies, setting standards on quality of service to customers, and every 5 years sets prices that companies can charge customers over the ensuing quinquennium. We use a stated choice experiment model to estimate benefits to water company customers of changes across 14 water service factors. The estimated values were quite similar for each service factor across models (conditional logit (CL), CL quadratic, nested logit (NL), or NL quadratic). Estimates of the cost of infrastructure maintenance and improvement with risk of asset failure, along with CL benefit estimates, permit economic optimization across the water company's whole investment program.

Source: Water Resources Research

DOI: 10.1029/2004wr003277

Authors: Kenneth G. Willis, Riccardo Scarpa, Melinda Acutt

Institutions: Newcastle University, University of York, Kelda Group (United Kingdom)

Language: English

Topic: Economic and Environmental Valuation

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Clean water and sanitation, Industry, innovation and infrastructure

Open Access status: bronze

OpenAlex ID: W1536313126

FWCI: 9.819

Cites: 17

Cited by: 96

Related to: 10