Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China

In determining domestic water prices, policy makers frequently need to use demand-side information rather than only rely on supply-side data as previously did, and household surveys are often conducted to collect information on the demand side. This paper presents a multiple bounded discrete choice...

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Main Authors:	Wang, Hua, Xie, Jian, Li, Honglin
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics P250 Renewable Resources and Conservation: Water Q250
Online Access:	http://hdl.handle.net/10986/5018

id	okr-10986-5018
recordtype	oai_dc
spelling	okr-10986-50182021-04-23T14:02:20Z Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China Wang, Hua Xie, Jian Li, Honglin Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics P250 Renewable Resources and Conservation: Water Q250 In determining domestic water prices, policy makers frequently need to use demand-side information rather than only rely on supply-side data as previously did, and household surveys are often conducted to collect information on the demand side. This paper presents a multiple bounded discrete choice (MBDC) survey model for collecting information about acceptability of different water prices by different types of households and estimating households' willingness to pay for water service improvement. The results obtained from MBDC surveys can be directly utilized in the development of water pricing and subsidy policies. An empirical MBDC study is conducted in Chongqing, China, where domestic water service quality was seriously inadequate, but financial resources were insufficient to improve the service quality. With a survey of 1500 households in five suburban districts in Chongqing Municipality, this study shows that a significant increase in water price is economically feasible as long as the poorest households are properly subsidized. The analysis also indicates that the order in which hypothetical prices are presented to the respondents with the MBDC method can systematically affect the answers and should be taken into account when designing such survey instruments. 2012-03-30T07:30:52Z 2012-03-30T07:30:52Z 2010 Journal Article China Economic Review 1043951X http://hdl.handle.net/10986/5018 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics P250 Renewable Resources and Conservation: Water Q250
spellingShingle	Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics P250 Renewable Resources and Conservation: Water Q250 Wang, Hua Xie, Jian Li, Honglin Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China
geographic_facet	China
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	In determining domestic water prices, policy makers frequently need to use demand-side information rather than only rely on supply-side data as previously did, and household surveys are often conducted to collect information on the demand side. This paper presents a multiple bounded discrete choice (MBDC) survey model for collecting information about acceptability of different water prices by different types of households and estimating households' willingness to pay for water service improvement. The results obtained from MBDC surveys can be directly utilized in the development of water pricing and subsidy policies. An empirical MBDC study is conducted in Chongqing, China, where domestic water service quality was seriously inadequate, but financial resources were insufficient to improve the service quality. With a survey of 1500 households in five suburban districts in Chongqing Municipality, this study shows that a significant increase in water price is economically feasible as long as the poorest households are properly subsidized. The analysis also indicates that the order in which hypothetical prices are presented to the respondents with the MBDC method can systematically affect the answers and should be taken into account when designing such survey instruments.
format	Journal Article
author	Wang, Hua Xie, Jian Li, Honglin
author_facet	Wang, Hua Xie, Jian Li, Honglin
author_sort	Wang, Hua
title	Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China
title_short	Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China
title_full	Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China
title_fullStr	Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China
title_full_unstemmed	Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China
title_sort	water pricing with household surveys: a study of acceptability and willingness to pay in chongqing, china
publishDate	2012
url	http://hdl.handle.net/10986/5018
_version_	1764393618702860288

Water Pricing with Household Surveys: A Study of Acceptability and Willingness to Pay in Chongqing, China

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