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Dealing with attributes in a discrete choice experiment on valuation of water services in East Peninsular Malaysia

C.I. Nur Syuhada, K. Mahirah and M.A. Roseliza

Utilities Policy, 2020, vol. 64, issue C

Abstract: This study aims to estimate the willingness to pay (WTP) among consumers in Terengganu, Malaysia for improvements in domestic water services. A questionnaire survey was administered to 1200 respondents. A series of stated choice experiments were used in which the Conditional Logit (CL) model and Mixed Logit (ML) models were valued to ascertain consumers' willingness to pay based on their preferences of the attributes. The attributes were improvement in water quality and water pressure, and reduction of water service disruptions. Empirical evidence such as identifying the attributes and their values based on consumers’ preferences are significant inputs towards the establishment of water tariffs and improvement of service levels. In addition, the information is useful for water provider in providing efficient services to the consumers.

Keywords: Choice experiment; Conditional logit model; Mixed logit model; Water service; Willingness to pay (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.jup.2020.101037

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