Households’ willingness-to-pay for different strategies aimed at reducing water supply network dysfunctions. A French case-study

Bénédicte Rulleau () and Margaux Sinceux ()
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Bénédicte Rulleau: UR ETTIS - Environnement, territoires en transition, infrastructures, sociétés - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Margaux Sinceux: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes

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Abstract: Using an original contingent valuation, this study compares the Willingness-To-Pay (WTP) of households for three water pipes renewal programs focused respectively on water quality, reducing leaks in networks and preventing breaks. A survey was conducted in southwest France: respondents were asked to rank the different renewal programs and then state the maximum amount they would be willing to pay in order to benefit from each. Results of a Heckman model suggest that variables influencing the probability of refusing to pay for a non-economic reason and the WTP differ from one program to another, which validates this choice of model. WTP estimates are not of the same order of magnitude whatever the program, and remained relatively low when compared to the actual water bill. While asset management is often only seen as an activity calling for specialised technical knowledge, users are able to perceive the outcome of that management process.

Keywords: Households’ preferences; Heckman two-stage sample selection model; Water supply; Infrastructure asset management; Contingent valuation (search for similar items in EconPapers)
Date: 2024-04-18
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Published in Urban Water Journal, 2024, 21 (6), pp.671-684. ⟨10.1080/1573062X.2024.2342781⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04550774

DOI: 10.1080/1573062X.2024.2342781

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