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Valuing drinking water quality after a PFAS contamination event: results from a meta-analysis benefit transfer

Francesco Jacopo Pintus ()
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Francesco Jacopo Pintus: University of Padova

No 308, "Marco Fanno" Working Papers from Dipartimento di Scienze Economiche "Marco Fanno"

Abstract: Drawing upon an extensive body of valuation literature focused on water quality, I conduct a meta-analysis benefit transfer exercise with the aim of quantifying the Willingness to Pay (WTP) for an enhancement in drinking water quality among households directly exposed to Perfluoroalkyl Substances (PFAS) over recent decades in Italy. My analysis comprises a metadata compilation encompassing 72 WTP estimates extracted from 39 previous valuation studies conducted in advanced economies. The transfer of values is realized estimating a meta regression model (MRM) which includes both study design and socio-economic explanatory variables, according to the Weak Structural Utility Theoretic approach. To determine the most suitable MRM specification, I engage in a comparative evaluation of various model configurations, assessing their predictive performance in terms of transfer errors and explanatory capability. The mean transfer error and the adjusted R-squared of the preferred MRM are in line with previous published meta-analysis and equal respectively to 0.665 and 0.607. Furthermore, the parameters estimated within the model align with both intuitive expectations and economic theory. As a result of the benefit transfer process, I estimate an annual WTP of e250.80 per household for improved drinking water quality within the PFAS-affected area, and an aggregate value of social benefits from PFAS decontamination of around e12 million.

Keywords: WTP; Meta-Analysis; Benefit Transfer; PFAS; Drinking Water. (search for similar items in EconPapers)
Pages: 23 pages
Date: 2023-09
New Economics Papers: this item is included in nep-dcm, nep-env, nep-ger and nep-upt
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