A nonparametric welfare analysis on water quality improvement of the floating people on Inlay Lake via a randomized conjoint field experiment

Su Thet Hninn, Keisuke Kawata, Shinji Kaneko and Yuichiro Yoshida
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Su Thet Hninn: Graduate School for International Development and Cooperation, Hiroshima University

No 6-2, IDEC DP2 Series from Hiroshima University, Graduate School for International Development and Cooperation (IDEC)

Abstract: This study evaluates the potential surplus gain of a water improvement policy and the causal effects of its components on choice probabilities for the floating people on Inlay Lake, Myanmar, based on a randomized conjoint field experiment. In our experimental design, respondents rank three options: two alternative policies and one status quo. We then present a method that enables us to estimate the minimum willingness-to-pay for a policy in the form of compensating variations under a set of weak assumptions using this conjoint data. Results show inter alia that the provision of toilet facilities and a collective wastewater treatment, and joint implementation of the policy by the government and local NGOs have a positive effects on the choice probabilities. Results also show that the surplus gain from a water-quality improvement policy is at least as large as 22.9% of the average annual per-capita income of those on the lake.

Keywords: eutrophication; randomized conjoint experiment; nonparametric welfare analysis; envirodevonomics (search for similar items in EconPapers)
JEL-codes: Q53 Q56 Q58 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016-05
New Economics Papers: this item is included in nep-agr, nep-exp and nep-sea
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Citations: View citations in EconPapers (1)

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