The influence of individuals in forming collective household preferences for water quality

Rungie, C.; Scarpa, R.; Thiene, M.

Abstract

Preference for water quality and its nonmarket valuation can be used to inform the development of pricing policies and long term supply strategies. Tap water quality is a household concern. The objective status quo of water provision varies between households and not between individuals within households, while charges are levied on households not individuals. Individual preferences differ from collective preferences. In households where there are two adults, we examine the preferences of each separately and then as a couple in collective decisions. We show the level of influence each has in developing the collective decision process. We use discrete choice experiments to model preference heterogeneity across three experiments on women, men and on both. We propose a random utility model which decomposes the error structure in the utility of alternatives so as to identify the individual influence in collective decisions. This approach to choice data analysis is new to environmental economics.

Citation

Rungie, C., Scarpa, R., & Thiene, M. (2014). The influence of individuals in forming collective household preferences for water quality. Journal of Environmental Economics and Management, 68(1), 161-174. https://doi.org/10.1016/j.jeem.2014.04.005

• Journal Article Type: Article
• Online Publication Date: May 10, 2014
• Publication Date: Jul 1, 2014
• Deposit Date: Jan 21, 2015
• Publicly Available Date: Feb 4, 2016
• Journal: Journal of Environmental Economics and Management
• Print ISSN: 0095-0696
• Electronic ISSN: 1096-0449
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 68
• Issue: 1
• Pages: 161-174
• DOI: https://doi.org/10.1016/j.jeem.2014.04.005
• Keywords: Structural choice model, Household preference, Tap water, Preference heterogeneity.
• Public URL: https://durham-repository.worktribe.com/output/1414209