Essays on the Economics of Drinking Water Quality and Infrastructure

dc.contributor.authorTanellari, Eftilaen
dc.contributor.committeechairBosch, Darrell J.en
dc.contributor.committeememberBoyle, Kevin J.en
dc.contributor.committeememberMills, Bradford F.en
dc.contributor.committeememberParmeter, Christopher F.en
dc.contributor.committeememberPease, James W.en
dc.contributor.departmentAgricultural and Applied Economicsen
dc.date.accessioned2014-03-14T20:12:12Zen
dc.date.adate2011-06-24en
dc.date.available2014-03-14T20:12:12Zen
dc.date.issued2011-04-29en
dc.date.rdate2012-06-01en
dc.date.sdate2011-05-17en
dc.description.abstractThis dissertation consists of three essays that examine consumer behavior with respect to drinking water quality issues. The first essay uses contingent valuation method to explore consumers' willingness to pay (WTP) for a hypothetical material in home drinking water infrastructure that will remain leak free. Willingness to pay is investigated using both dichotomous choice and dichotomous choice with follow-up formats using a national telephone survey of consumers. Our results indicate that consumers' concerns about future system failures and income positively affect their WTP for an improved material while satisfaction with the water quality, education and the bid amount asked negatively affect their WTP for an improved material. There are no significant differences in the determinants of WTP between respondents who have experienced problems with home water infrastructure and respondents who have not. Furthermore, the estimated mean WTP does not change significantly between the dichotomous choice questioning format and the dichotomous choice with follow-up format The second essay investigates the determinants of consumers' willingness to accept improvement programs for three drinking water issues: water quality, pinhole leaks in home plumbing infrastructure and aging public infrastructure. The research is based on a mail survey of consumers in Northern Virginia and the Maryland suburbs of Washington D.C. The analysis focuses on the relationship between information, risk perceptions and willingness to pay. Results indicate that the choice to support any of the programs is negatively affected by the cost of the proposed improvement. Consumers' risk perceptions, the external information provided in the survey and whether they read the annual report from their water utility affect their choices for investment in improvement programs. The third essay examines the effect of risk perceptions about tap water, general risk aversion and consumers' characteristics on their decision to avert drinking water risks and related expenditures. Results are based on the same survey data from the second study. The risk aversion measure is elicited using the sequence of questions employed in the National Panel Study of Income Dynamics. Results indicate that consumers' risk perceptions affect both the decision to avert and the amount spent on averting activities. However, we do not find a significant impact of risk aversion on averting behavior. In addition we find that respondents were more likely to use water treatments if they were unsatisfied with their tap water or had problems or concerns with water odor and particles.en
dc.description.degreePh. D.en
dc.identifier.otheretd-05172011-202204en
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-05172011-202204/en
dc.identifier.urihttp://hdl.handle.net/10919/27769en
dc.publisherVirginia Techen
dc.relation.haspartTanellari_E_D_2011.pdfen
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subjectAverting Behavioren
dc.subjectDrinking Water Infrastructureen
dc.subjectDrinking Water Qualityen
dc.subjectWillingness-To-Payen
dc.titleEssays on the Economics of Drinking Water Quality and Infrastructureen
dc.typeDissertationen
thesis.degree.disciplineAgricultural and Applied Economicsen
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen
thesis.degree.leveldoctoralen
thesis.degree.namePh. D.en

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