Seo, Misuk and Pape, Andreas Duus (2011): Reports of Water Quality Violations induce Consumers to buy Bottled Water.
Download (8MB) | Preview
The 1996 Safe Drinking Water Act Amendments require that water utilities mail drinking water quality reports to their customers annually. The public uses this information; the news of a water quality violation makes a household 21% more likely to purchase bottled water in the following year. We estimate that about 768,000 additional Americans purchase bottled water because of reported violations. We measure reports of violations with Environmental Protection Agency (EPA) data about violation reports from 1,300 water utilities, with a service population of approximately 10 million people total. We measure the consumer response using the Consumer Expenditure (CEX) survey from 2006-2008 with 10,874 households, and we match consumers to utilities geographically.
|Item Type:||MPRA Paper|
|Original Title:||Reports of Water Quality Violations induce Consumers to buy Bottled Water|
|Keywords:||Water Quality Reports, Environmental Information, Consumer Response to Information, Bottled Water Expenditure, Consumer Expenditure Survey|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q25 - Water
|Depositing User:||Andreas Pape|
|Date Deposited:||19. Jan 2011 17:10|
|Last Modified:||08. Mar 2013 23:21|
Nii Adote Abrahams, Bryan J. Hubbell, and Jeffrey L. Jordan. Joint production and averting expenditure measures of willingness to pay: Do water expenditures really measure avoidance costs?. American Journal of Agricultural Economics, 82(2):427, 2000.
American Water Works Association. Residential End Uses of Water. American Water Works Association Research Foundation, 1999.
Lori S. Bennear and Sheila M. Olmstead. The impacts of the ”right to know”: Information disclosure and the violation of drinking water standards. Journal of Environmental Economics and Management, 56(2):117 – 130, 2008.
Charles Duhigg. Millions in u.s. drink dirty water, records show. The New York Times, 12 2009. URL http://www.nytimes.com.
S. Gaudin. Effect of price information on residential water demand. Applied Economics, 38(4):383 – 393, 2006.
James J Heckman. Sample selection bias as a specification error. Econometrica, 47:153–161, 1979.
Paul Jakus, W Shaw, To Nguyen, and Mark Walker. Risk perceptions of arsenic in tap water and consumption of bottled water. Water Resour. Res., 45(5), May 2009.
Jyotsna Jalan and E. Somanathan. The importance of being informed: Experimental evidence on demand for environmental quality. Journal of Development Economics, 87(1):14–28, 8 2008.
Jyotsna Jalan, E.Somanathan, and Saraswata Chaudhuri. Awareness and the demand for environmental quality: Drinking water in urban india. Indian Statistical Institute, Delhi Planning Unit, 2003.
Branden B. Johnson. Do reports on drinking water quality affect customers’ concerns? experiments in report content. Risk Analysis: An International Journal, 23(5):985 – 998, 2003.
Bruce A. Larson and Ekaterina D. Gnedenko. Avoiding health risks from drinking water in moscow: An empirical analysis. Environment and Development Economics, 4(4):565–581, 1999.
Malgosia Mada jewicz, Alexander Pfaff, Alexander van Geen, Joseph Graziano, Iftikhar Hussein, Hasina Momota j, Roksana Sylvi, and Habibul Ahsan. Can information alone change behavior? response to arsenic contamination of groundwater in bangladesh. Journal of Development Economics, 84(2):731 – 754, 2007.
Nicholas E. Piggott and Thomas L. Marsh. Does food safety information impact u.s. meat demand?. American Journal of Agricultural Economics, 86(1):154 – 174, 2004.
V. Kerry Smith and William H. Desvousges. Averting behavior: Does it exist? Economics Letters, 20(3):291 – 296, 1986.
Mario F. Teisl, Brian Roe, and Robert L. Hicks. Can eco-labels tune a market? evidence from dolphin-safe labeling. Journal of Environmental Economics and Management, 43(3):339 – 359, 2002.
United States Environmental Protection Agency. Factoids: Drinking water and ground water statistics for 2009. Office of Water (4601M) EPA 816K-09-004, Wahsington, DC, 2009.
Joshua Graff Zivin, Matthew Neidell, and Wolfram Schlenker. Water quality violations and avoidance behavior: Evidence from bottled water consumption. Working Paper 16695, National Bureau of Economic Research, January 2011.
Available Versions of this Item
- Reports of Water Quality Violations induce Consumers to buy Bottled Water. (deposited 19. Jan 2011 17:10) [Currently Displayed]