A cost‐benefit analysis of restoring the ecological integrity of Jeonju stream,Korea

This article aims to assess the economic benefits of restoring the ecological integrity of Jeonju stream, Korea and then conduct an ex post cost‐benefit analysis of the restoration. The benefits are measured by using the contingent valuation eliciting the local residents’ willingness to pay (WTP) for the restoration supposing that the restoration had not been implemented. The mean yearly WTP for the restoration is calculated to be KRW 2897 (USD 2.46) per household for the next 10 years. The costs of the restoration include the costs of restoring the ecological integrity for 2 years and maintaining it for the next 50 years. The ratio of benefit over cost, the net present value and the internal rate of return are estimated as 1.1, KRW 0.5 billion (USD 0.4 million) and 6.4%, respectively, which exceed 1.0, 0 and social discount rate of 5.5%, respectively. The results show that the restoration is socially profitable.     

Household willingness to pay for a smart water metering and monitoring system: The case of South Korea

This paper attempts to appraise the public value of expanding the introduction of a smart water metering and monitoring system (SWMMS) nationwide by adopting a contingent valuation approach of asking about a consumer's preference for a good using a survey of people. Randomly chosen 1000 households were interviewed using the one-and-one-half-bounded question. The monthly public value was obtained as KRW 862 (USD 0.77) per household, equivalent to 6.6% of a water bill. The monthly related cost was calculated as KRW 425 (USD 0.38) per household. Thus, the introduction of an SWMMS would be socially profitable.     

Demand management aspects of urban water policy in the industrial sector: the case of the city of Thessaloniki,Greece

The present paper presents the main results of a research project. It deals with consumers' perception of water issues in the industrial sector, and examines and analyses water use patterns, water conservation methods and water pricing issues. Issues presented are the contribution of water to production processes, water consumption levels, water conservation options, the possibility of construction of a dual water supply system, the evaluation of different pricing policies, the willingness to pay (WTP) and the potential impact of a price increase. The study has shown that there is limited use of recycling methods, few pollution control practices and small effect of industrial water price on water consumption levels. As far as industrial consumers are concerned, they present inaccurate perception of water consumption levels and low willingness to pay for the improvement of water services.     

Using contingent valuation and choice experiment to value the impacts of agri-environmental practices on landscapes aesthetics

This study explores the willingness to pay (WTP) for an improvement of the environmental situation in agricultural areas with a specific focus on landscape aesthetics. We used the contingent valuation method to measure the discrete value of landscape aesthetics externalities produced by different beneficial management practices implementation scenarios. The choice experiment method was also used to measure the economic value of other ecosystem services in order to situate landscape in consumers’ preferences among other non-market benefits produced by agri-environmental practices. We found important WTP for landscape aesthetics improvement, as well as for other ecosystem services, such as water quality and fish diversity.     

Dealing with attributes in a discrete choice experiment on valuation of water services in East Peninsular Malaysia

This study aims to estimate the willingness to pay (WTP) among consumers in Terengganu, Malaysia for improvements in domestic water services. A questionnaire survey was administered to 1200 respondents. A series of stated choice experiments were used in which the Conditional Logit (CL) model and Mixed Logit (ML) models were valued to ascertain consumers' willingness to pay based on their preferences of the attributes. The attributes were improvement in water quality and water pressure, and reduction of water service disruptions. Empirical evidence such as identifying the attributes and their values based on consumers’ preferences are significant inputs towards the establishment of water tariffs and improvement of service levels. In addition, the information is useful for water provider in providing efficient services to the consumers.     

Willingness to pay for sustainable drainage systems in a highly urbanised city: a contingent valuation study in Hong Kong

Sustainable drainage systems (SuDS) reduce surface runoff and pollution from developed areas using various techniques such as green roofs and porous pavements. These systems are becoming popular worldwide, except in highly urbanised cities. This study used contingent valuation to investigate city dwellers’ perceptions of SuDS and their willingness to pay (WTP). Face‐to‐face interviews were conducted with 600 respondents in Hong Kong. In general, the participants’ understanding of stormwater management was not strong, although they supported SuDS. The mean and the median WTP were 8.8 and 15.0%, respectively, of the current government spending on stormwater management for public places, and 1.8 and 2.5%, respectively, of the property price for private properties. These WTP were lower than those reported in the previous overseas studies. Respondents who were relatively younger, better educated, had higher income, and came from a previously flooded district had higher WTP. These results facilitated strategic SuDS implementation in highly urbanised cities.     

Implementation of the “sponge city” development plan in China: An evaluation of public willingness to pay for the life-cycle maintenance of its facilities

Urban stream syndrome, including urban waterlogging, flood risk, water shortage, water pollution and ecological restoration, are major challenges that cause potential risks to human beings. Recently, the sponge city construction (SCC) initiative in China has received extensive attention because it aims to systematically solve all of these urban water-related issues for a city. To date, little research has focused on the life-cycle operations, maintenance requirements and low public awareness of sponge city facilities (SCFs; e.g., rain gardens, green roofs, grass swales, and pavement greenbelts), which are challenges facing the development and sustainability of the SCC initiative. The aim of this study is to explore (i) the willingness to pay (WTP) for the life-cycle maintenance of SCFs and its determinants and (ii) the public's perceptions and attitudes towards the SCC initiative. We conducted a questionnaire-based survey combined with contingent valuation in three pilot sponge cities and then applied a two-phase logistic model and Tobit model to estimate the WTP of the respondents and the factors influencing the WTP. The results show that 76% of the respondents agreed to pay for life-cycle maintenance of SCFs, and the median amount of WTP was 16.57 CNY (2.53 USD) per month. Important factors influencing WTP include respondents' perceptions of the efficacy of the SCFs, concerns regarding the waterlogging risk and support for the SCF construction plans. The findings of this research extend our knowledge of the public's perceptions of and attitudes towards the SCC initiative and suggest that public contributions could serve as a crucial and feasible funding source for the life-cycle maintenance of SCFs.     

Farmers’ willingness‐to‐pay towards soil and water conservation measures in agro‐ecosystems of Chotanagpur Plateau,India

Lack of importance given to farmers’ knowledge and perceptions towards soil and water conservation (SWC) is a major factor responsible for failure of conservation programs. The study explores farmers understanding of SWC and further adds to the limited empirical evidence towards farmers’ willingness‐to‐pay (WTP) for SWC. Contingent valuation survey conducted to elicit the WTP (cash and labor days) for SWC draws attention to the importance of adopting SWC to ensure year‐round water availability. The willing households of the area could generate US$1302.2 and/or 1207 labor days monthly. The WTP (cash) showed strong positive influence by qualification, total income, off‐farm income and previous irrigation farming experience; while WTP (labor days) showed strong negative influence by age, qualification, dependency ratio, market access and livestock holding. The study will be useful for decision makers regarding investments and policy purposes for soil–water conservation measures in agricultural lands of developing countries.     

Liquidity and Price Differentials: Evidence in the Hong Kong Residential Re-sale Market

Transaction data suggest the existence of a price differential between large-scale estates and single-block buildings. This paper attempts to explain why such a price differential may exist even in the long-term equilibrium position due to better quality of the structural attributes and the premium that home buyers are willing to pay for the additional liquidity of large-scale estates. Empirical results suggest a 15 per cent premium for better quality of structural attributes in the large-scale estates and the premium for liquidity accounts for more than one-third of the price differential. The market takes approximately four months to correct for equilibrium error, which might easily be shortened by the government agency with the use of an on-line registration system and hence market efficiency can be improved.     

Household valuation of smart-home functionalities in Slovenia

The paper analyses consumer willingness to invest in a smart home and attempts to establish willingness to pay for various smart-home functionalities among Slovenian households in 2013. The estimated results suggest that consumers positively perceive energy and security related smart-home functionalities, though willingness to pay (WTP) for any particular functionality is not found to be very high. In comparison to stated WTP, current market prices are mostly too high to expect higher penetration rates of smart home devices in the very near future. Household income, technology progressiveness, and energy conservation habits are found to positively influence purchases of smart-home functionalities.     

Valuing the non-user benefits of improving water and sanitation in informal settlements: a study of Cape Town

In the face of declining public subsidies, municipalities will have to find additional revenue to meet the expectations of growing populations that cannot afford to pay. Conventional approaches to setting user fees do not evaluate the benefits to members of society who do not directly use the service. This paper presents a study that measured the willingness of the ‘non-poor’ residents of Cape Town, to pay for the benefits of improving services in informal settlements. The respondents expressed highest preference for shared facilities followed by yard facilities, and were willing to pay USD 11.21; and USD 7.73 per month respectively. Willingness-to-pay was influenced by proximity to the informal settlement and on method of payment. The potential revenue from non-user value exceeded the installation costs for shared and yard facilities, suggesting that municipalities could finance upgrades by harnessing the non-user value among the non-poor residents. The method applied in this study could be used to improve policy planning and subsidy targeting.     

Cost–benefit analysis of constructing a filtration plant for the National Water Carrier in Israel

The paper presents an economic cost–benefit analysis (CBA) of the construction of a filtration plant for the Israeli National Water Carrier (NWC). Its main contribution lies in the comparison between the costs and the benefits of filtration in the context of a concrete policy choice. The first part of the paper presents a cost analysis of two alternative engineering systems: central filtration and localized filtration. The analysis shows that the costs of constructing and operating a central filtration plant are significantly lower than those of a system of local plants. The second part of the paper presents a two‐stage method for assessing the benefits of filtration. First, we valuate the damages caused by consumption of unfiltered water; then we estimate consumers' willingness to pay (WTP) for improved water quality, taking into account households' potential risk aversion. The main result is that total WTP significantly outweighs the costs of constructing and operating the plant.     

Awareness of coping costs and willingness to pay for urban drinking water service: Evidence from Lahore,Pakistan

The global population is rapidly urbanizing, increasing pressure on scarce water resources. Lahore, Pakistan, is a case in point, with limited options for increasing water supply to meet booming demand. We ask whether households are willing to pay more cost-reflective tariffs following a simple, randomized information treatment involving calculation of the costs of coping with poor service quality. Treated households are 20 percentage points more likely to acquiesce to increased tariffs for improved service, and median monthly WTP increases 17–18%. A simple verbal procedure can increase acceptance of price increases, offering managers a valuable tool for water demand management.     

Estimating elasticities of demand and willingness to pay for clean drinking water: empirical evidence from a household level survey in northern Pakistan

This study estimates income and price elasticities of demand for improved drinking water quality in Peshawar, Pakistan. The estimates indicate that improved water can be described as a necessity but normal and an ordinary and price elastic service. Confidence intervals show however that the classification as a necessity is statistically significant. Income elasticities of willingness to pay for drinking water are estimated. The study finds that income and willingness to pay vary directly and significantly. The elasticity estimates, in general, are greater than zero, but less than unity. The study concludes that improvements in drinking water are more beneficial to low‐income groups than for high‐income groups.     

The impact of climate change on reservoir water quality and water treatment plant operations: a UK case study

A simplified climate change impact assessment tool (SCIAT) has been developed to address the specific needs of the water industry and provides a tool to translate climate change projections into ‘real world’ impacts. Its application is demonstrated in this study to assess the impacts of climate change on the reservoir water quality and water treatment plant (WTP) operations at Grafham Water in the east of England. The primary aim is to provide WTP operators with knowledge of the potential impacts and associated probabilities of occurrence of climate change, enabling them to make informed, risk‐based adaptation and planning decisions. Using a series of coupled hydrological and water‐quality models, it is likely that there will be a decline in average reservoir water quality. Climate change will also have an impact on WTP operations, but these will be manageable within the current operational parameters.     

Price regulation in a spatial duopoly with possible non-buyers

If the price is regulated in a spatial duopoly where consumers have a finite upper bound as to the price they are willing to pay for the differentiated product, in most cases the Principle of Minimum Differentiation does not apply. Depending on the market structure firms either (i) form local monopolies, or (ii) differentiate intermediately, or (iii) agglomerate at the market centre. Minimum differentiation is never total-surplus-maximizing nor desired by firms. In most cases the regulator sets a price below that maximizing industry profits. For a substantial range of market configurations the regulated (first-best) price exceeds marginal cost. This induces firms to serve a larger part of the market. Received: February 1999/Accepted: September 2001     

Antibiotic resistance in coagulase negative staphylococci isolated from wastewater and drinking water

This study reports the antibiotic resistance patterns of coagulase negative staphylococci (CNS) isolated from a drinking water treatment plant (WTP), a drinking water distribution network, responsible for supplying water to the consumers (WDN), and a wastewater treatment plant (WWTP), responsible for receiving and treating domestic residual effluents. Genotyping and the 16S rRNA gene sequence analysis demonstrated a higher diversity of species both in the WTP (6 species/19 isolates) and WWTP (12 species/47 isolates) than in the WDN (6 species/172 isolates). Staphylococcus pasteuri and Staphylococcus epidermidis prevailed in the WTP and WDN and Staphylococcus saprophyticus in the WWTP. Staphylococci with reduced susceptibility (resistance or intermediary phenotype) to beta-lactams, tetracycline, clindamycin and erythromycin were observed in all types of water and belonged to the three major species groups. The highest resistance rate was found against erythromycin, presumably due to the presence of the efflux pump encoded by the determinant msrA, detected in the majority of the resistant isolates. This study demonstrates that antibiotic resistant CNS may colonize different types of water, namely drinking water fulfilling all the quality standards.     

Tornado shelters and the housing market

Mitigation against natural hazards often involves long‐lived, immobile investments. Home owners must be able to capture the present value of future benefits to equate the private and societal return on mitigation. The capitalization of mitigation into home prices thus is crucial for home owners to have a proper incentive for mitigation. We investigate the existence of a premium for tornado shelters using home sales in Oklahoma City, where the deadly tornado outbreak of 3 May 1999 and the Oklahoma Saferoom Initiative increased public awareness of tornado shelters. We find that a shelter increases the sale price of a home by 3.5% to 4% or approximately $4200 given the mean price of homes sold in 2005. The magnitude of the premium is plausible given that shelters retail for $2500–$3000 installed.