Economic evaluation of bottled water consumption as an averting means: evidence from a hedonic price analysis

Senhui He, Jeffrey Jordan () and Krishna Paudel

Applied Economics Letters, 2008, vol. 15, issue 5, 337-342

Abstract: This study alerts researchers and policy makers to the importance of the price effect of bottle size in an economic evaluation of using bottled water as a means to avoid health risks from drinking home tap water. It derived a proxy for the economic value of smaller bottle size by analysing a hedonic price model. The results show that, by not accounting for the economic value of smaller bottle size, we can overstate consumer willingness-to-pay for safer drinking water by more than 100%.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:15:y:2008:i:5:p:337-342

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DOI: 10.1080/13504850600706040

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