Determinants of Willingness-to-Pay to Avoid Water Outage under Extreme Weather Events

Yongwang Ren, Jason Bergtold, Mariam Gharib, Eliyasu Osman, Elaina Sutley and Rumana Sharmin

No 361201, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: Households are negatively affected by water outages under the context of more frequent natural disasters, aging water infrastructure, and inadequate investment in upgrading the system. Using choice experiment data and random coefficient model, we estimated Kansas households’ willingness to pay (WTP) to avoid water outages during extreme weather events. The results indicate that the WTP increases with the duration of the water outages at a decreasing rate. The WTP is also higher if the water outage occurred during winter. Furthermore, we find heterogeneous preferences of urban and rural households as the former care more about the time and season when water outages occurred. These findings provide important information and insight for policy makers when making investment decisions on hardening water infrastructure.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 23
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/361201/files/1 ... ge_wtp_AAEA_2025.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:361201

DOI: 10.22004/ag.econ.361201

Access Statistics for this paper

More papers in 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().