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Improving Drinking Water Quality in South Korea:A Choice Experiment with control for Hypothetical Bias

Gschwandtner, Adelina and Jang, Cheul and McManus, Richard (2017) Improving Drinking Water Quality in South Korea:A Choice Experiment with control for Hypothetical Bias. Discussion paper. University of Kent (KAR id:71747)

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Increased pollution leads to a constant decrease of drinking water quality worldwide. Due to safety concerns, unpleasant taste and odour only about 3% of the population in South Korea is drinking untreated tap water. The present study uses choice experiments and cost-benefit analysis to investigate the feasibility of installing two advanced water treatments in Cheongju waterworks in South Korea. The waterworks is situated in the middle of the country and is providing more than half a million people with drinking water. The study uses latent class attribute non-attendance models in a choice experiment setting in order to estimate the benefits of the two water treatments. Moreover, it uses various methods to correct for potential hypothetical bias. This is important as hypothetical bias impedes the reliability of survey results. The lower bound of the median WTP for installing a new advanced water treatment system is about $2 US/month, which is similar to the average expenditures for bottled water per household in South Korea. These lower bounds were found using bootstrapping and simulations. Scenarios under which the instalment of the advanced water treatments is feasible are discussed together with environmental solutions in the long-run.

Item Type: Reports and Papers (Discussion paper)
Uncontrolled keywords: Drinking Water Quality, Water Pollution, Choice Experiments, Willingness to Pay, Random Parameter and Latent Class Logit, Cost-Benefit Analysis, Hypothetical Bias Treatments, Cheap Talk, Honesty Priming, Attribute Non-Attendance
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Adelina Gschwandtner
Date Deposited: 21 Jan 2019 12:39 UTC
Last Modified: 15 Sep 2021 15:23 UTC
Resource URI: (The current URI for this page, for reference purposes)

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Gschwandtner, Adelina.

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