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

Rungie, C. and Scarpa, R. and Thiene, M. (2014) 'The influence of individuals in forming collective household preferences for water quality.', Journal of environmental economics and management., 68 (1). pp. 161-174.

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.

Item Type:Article
Keywords:Structural choice model, Household preference, Tap water, Preference heterogeneity.
Full text:(AM) Accepted Manuscript
Available under License - Creative Commons Attribution Non-commercial No Derivatives.
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Status:Peer-reviewed
Publisher Web site:http://dx.doi.org/10.1016/j.jeem.2014.04.005
Publisher statement:© 2014 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Record Created:04 Feb 2016 10:50
Last Modified:04 Feb 2016 11:24

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