Water Quality Violations and Avoidance Behavior: Evidence from Bottled Water Consumption

Joshua Graff Zivin, Matthew Neidell and Wolfram Schlenker

No 16695, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we examine the impact of poor water quality on avoidance behavior by estimating the change in bottled water purchases in response to drinking water violations. Using data from a national grocery chain matched with water quality violations, we find an increase in bottled water sales of 22 percent from violations due to microorganisms and 17 percent from violations due to elements and chemicals. Back-of-the envelope calculations yield costs of avoidance behavior at roughly $60 million for all nationwide violations in 2005, which likely reflects a significant understatement of the total willingness to pay to eliminate violations.

JEL-codes: H41 I18 Q53 Q58 (search for similar items in EconPapers)
Date: 2011-01
Note: EEE EH
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

Published as Joshua Graff Zivin & Matthew Neidell & Wolfram Schlenker, 2011. "Water Quality Violations and Avoidance Behavior: Evidence from Bottled Water Consumption," American Economic Review, American Economic Association, vol. 101(3), pages 448-53, May.

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Journal Article: Water Quality Violations and Avoidance Behavior: Evidence from Bottled Water Consumption (2011)
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