ERA

Download the full-sized PDF of Estimating the Economic Value of Drinking Water Reliability in AlbertaDownload the full-sized PDF

Analytics

Share

Permanent link (DOI): https://doi.org/10.7939/R3N873711

Download

Export to: EndNote  |  Zotero  |  Mendeley

Communities

This file is in the following communities:

Graduate Studies and Research, Faculty of

Collections

This file is in the following collections:

Theses and Dissertations

Estimating the Economic Value of Drinking Water Reliability in Alberta Open Access

Descriptions

Other title
Subject/Keyword
water reliability
contingent valuation
spike model
risk perceptions
endogeneity
control function
Type of item
Thesis
Degree grantor
University of Alberta
Author or creator
Appiah, Alfred
Supervisor and department
Adamowicz, Wiktor (REES)
Examining committee member and department
Mohapatra, Sandeep (REES)
Boxall, Peter (REES)
Adamowicz, Wiktor (REES)
Rude, James (REES)
Department
Department of Resource Economics and Environmental Sociology
Specialization
Agricultural and Resource Economics
Date accepted
2016-08-16T09:41:35Z
Graduation date
2016-06:Fall 2016
Degree
Master of Science
Degree level
Master's
Abstract
The overall objective of this study was to provide an estimate of the monetary value of drinking water reliability in Alberta. The study employed the results of an Alberta-wide survey on drinking water reliability. The survey elicited respondents’ experiences with, and risk perceptions of, three types of water outages. Respondents who expressed positive risk perceptions were presented with alternative programs that reduce their risk perceptions to specified percentages, but increased their water bills. Using cost and other program attributes as explanatory variables, a random effects probit model was employed to measure the probability of supporting the programs and to account for unobserved heterogeneities that may be present in the sample. Kristrom’s simple spike model was also used to account for “indifference” to the valuation scenarios. A control function approach was used to account for the potential presence of endogeneity in the absolute and subjective risk reductions of water outages using the respondents’ perceived risk of internet outages as instruments. The survey results indicated that respondents have not experienced many water outages in the last 10 years, but expect significant percentages of them in the next 10 years. Using parameter estimates from random effects probit models for respondents with positive risk perceptions, we calculated a mean willingness to pay (WTP) of $71 per year for at least a 50% reduction in the likelihood of a short-term water outage. Results of the spike models for all respondents, regardless of their risk perceptions, indicate a WTP of $46 per year for at least a 50% reduction in the risk of short-term water outages. Results of control function mixed logit models showed that, given the chosen instruments, short-term absolute risk reductions are endogenous in the models. Controlling for endogeneity slightly increases welfare measures by about 7%.
Language
English
DOI
doi:10.7939/R3N873711
Rights
This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for the purpose of private, scholarly or scientific research. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.
Citation for previous publication

File Details

Date Uploaded
Date Modified
2016-08-16T15:41:36.538+00:00
Audit Status
Audits have not yet been run on this file.
Characterization
File format: pdf (PDF/A)
Mime type: application/pdf
File size: 3855323
Last modified: 2016:11:16 15:41:20-07:00
Filename: Appiah_Alfred_201608_MSc.pdf
Original checksum: 106cdd1a34989b2c94ac496764f45b0a
Activity of users you follow
User Activity Date