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Comparing Contingent Valuation and Averting Expenditure Estimates of the Costs of Irregular Water Supply

机译：不定期供水成本的或有评估和避免支出估计的比较

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We compare two methods-contingent valuation and averting expenditures-to measure the demand for improved water reliability in urban Jordan. Traditionally, averting expenditures (a revealed preference measure) have been considered a lower bound for demand relative to contingent valuation (a stated preference measure) estimates. We develop a theoretical model to show that this relationship critically depends on household perceptions. In our setting, this insight is important, because households appear to have relatively low confidence in both the reliability and quality of existing water supplies, even though water quality tests suggest that utility water is safe to drink from a microbial perspective. Averting expenditures, which reach 4% of monthly expenditures on average, include substantial purchases of non-network water sourced from water shops or tankers, as well as costs in terms of water collection time, storage and in-home treatment. In contrast, the contingent valuation responses, while correlated with coping costs, reveal low willingness to pay for increases in water reliability from the utility network. We attribute this departure from the traditional relationship between averting expenditures and contingent valuation to the lack of household confidence in the quality of utility provided water. Our study thus adds to previous evidence in the literature, which points to the importance of consumer perceptions in determining demand for environmental improvements.
机译：我们比较了两种方法-或有估值和避免支出-来衡量约旦城市对提高水可靠性的需求。传统上，相对于或有估值（规定的偏好度量）估计，避免支出（已揭示的偏好度量）被认为是需求的下限。我们开发了一个理论模型来表明这种关系主要取决于家庭的看法。在我们的环境中，这种洞察力很重要，因为尽管水质测试表明从微生物的角度来看公用水是安全的，但家庭似乎对现有供水的可靠性和质量的信心相对较低。避免的支出平均达到每月支出的4％，其中包括大量购买自水店或油轮获得的非管网水，以及集水时间，存储和家庭处理方面的成本。相比之下，或有的估值响应虽然与应对成本相关，但显示出为公用事业网络中水可靠性提高付费的意愿很低。我们将这种偏离避免支出与或有估值之间的传统关系的原因归因于家庭对公用事业提供的水的质量缺乏信心。因此，我们的研究增加了文献中的先前证据，这些证据指出了消费者的看法对于确定环境改善需求的重要性。

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