Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala

Benjamin Leiva, George Van Houtven, William F. Vásquez and Andrea Nájera

Utilities Policy, 2023, vol. 82, issue C

Abstract: Water service interruptions often impose considerable costs on water users, and lead more households to invest in in-home water storage infrastructure. Studying the value households assign to continuous water supply may help design more effective policies. Using a unique primary dataset from Guatemala City (n = 567), we estimate hedonic models of rental prices to derive marginal values of fewer water service interruptions and in-home water storage infrastructure. Results indicate that, on average, rental prices decrease by 0.7% with each day of water service interruptions and increase by 10% for housing units with storage infrastructure relative to those without it.

Keywords: Water intermittency; Water storage; Hedonic model (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000383

DOI: 10.1016/j.jup.2023.101526

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