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Article
Publication date: 3 December 2020

Emmanuel Kwame Nti, Camillus Abawiera Wongnaa, Nana Sampson E. Edusah, John-Eudes Andivi Bakang and Vasco Baffour Kyei

The purpose of this paper is to support the development of effective strategies that enhance community water supply systems. The study examined service constraints and willingness

Abstract

Purpose

The purpose of this paper is to support the development of effective strategies that enhance community water supply systems. The study examined service constraints and willingness to pay for better services in community-managed water supply services using empirical evidence from beneficiaries of a small-town water supply system in Ghana.

Design/methodology/approach

A survey design of both descriptive and exploratory research is adopted, the descriptive survey handles the quantitative aspect, while the exploratory survey handles the qualitative aspect. The authors collected data using a structured survey questionnaire from 387 beneficiaries who were public standpipe and domestic users. Descriptive statistics, Kendall's coefficient of concordance and Cragg's two-step model were the methods of analysis employed.

Findings

The respondents ranked lack of capacity (managerial) as the topmost constraint of the community-managed water system. The findings indicate that 57% of the beneficiaries were not willing to pay, whiles 43% were willing to pay. Also, results from Cragg's two-step regression model indicate that different sets of factors affect willingness-to-pay and amount-to-pay decisions. The study revealed that while a willingness-to-pay decision is influenced by income, education, marital status and customer service, the estimated-amount-to-pay decision is more influenced by income and education.

Originality/value

Building on the empirical evidence, the findings indicated that the water and sanitation management team can increase the current fee of GH¢ 5.00/1 m3 (≈US$ 0.87) by increasing beneficiaries charge for a bucket of water from GH¢ 0.10p (≈US$ 0.017) to GH¢ 0.21p (≈US$ 0.036) for better services within the community. Importantly, the additional charge should take into consideration income and education which were noted to significantly influence the beneficiary's amount-to-pay decision for better services in the community-managed water supply system.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 17 no. 3
Type: Research Article
ISSN: 2042-5961

Keywords

Book part
Publication date: 27 August 2014

Mark Dickie and Matthew J. Salois

The chapter investigates: (1) Do married parents efficiently allocate time to children’s health care? (2) Are parents willing to sacrifice consumption for health improvements at…

Abstract

Purpose

The chapter investigates: (1) Do married parents efficiently allocate time to children’s health care? (2) Are parents willing to sacrifice consumption for health improvements at an equal rate for all family members? (3) How does family structure affect health trade-offs parents make? (4) Are parental choices consistent with maximization of a single utility function?

Methodology

A model is specified focusing on how parents allocate resources between consumption and goods that relieve acute illnesses for family members. Equivalent surplus functions measuring parental willingness to pay to relieve acute illnesses are estimated using data from a stated-preference survey.

Findings

Results provide limited support for the prediction that married parents allocate time to child health care according to comparative advantage. Valuations of avoided illness vary between family members and are inconsistent with the hypothesis that fathers’ and mothers’ choices reflect a common utility function.

Research implications

Prior research on children’s health valuation has relied on a unitary framework that is rejected here. Valuation researchers have focused on allocation of resources between parents and children while ignoring allocation of resources among children, whereas results suggest significant heterogeneity in valuation of health of different types of children and of children in different types of households.

Social implications

Results may provide a justification on efficiency grounds for policies to provide special protection for children’s health and suggest that benefit–cost analyses of policies affecting health should include separate estimates of the benefits of health improvements for children and adults.

Details

Preference Measurement in Health
Type: Book
ISBN: 978-1-78441-029-2

Keywords

Book part
Publication date: 16 October 2007

Neil Bruce and Robert Halvorsen

One of the most contentious issues concerning benefit–cost analyses of environmental and other regulatory programs has been the valuation of reductions in mortality risks. The…

Abstract

One of the most contentious issues concerning benefit–cost analyses of environmental and other regulatory programs has been the valuation of reductions in mortality risks. The conceptual basis for most valuation exercises has been the value of a statistical life (VSL). However, despite decades of both theoretical and empirical research on the meaning and measurement of the VSL concept, there is no consensus concerning the validity of the results it produces in actual applications. In this paper, we review the development and application of the VSL approach and then propose what we believe to be a better way to value changes in mortality hazard.

Details

Research in Law and Economics
Type: Book
ISBN: 978-1-84950-455-3

Book part
Publication date: 27 August 2014

V. Kerry Smith, Carol Mansfield and Aaron Strong

This chapter reports estimates of consumers’ preferences for plans to improve food safety.

Abstract

Purpose

This chapter reports estimates of consumers’ preferences for plans to improve food safety.

Design/methodology/approach

The plans are distinguished based on whether they address the ex ante risk of food borne illness or the ex post effects of the illness. They are also distinguished based on whether they focus on a public good – reducing risk of illness for all consumers or allowing individual households to reduce their private risks of contracting a food borne pathogen.

Findings

Based on a National Survey conducted in 2007 using the Knowledge Network internet panel, our findings indicate consumers favor ex ante risk reductions and are willing to pay approximately $250 annually to reduce the risk of food borne illness. Moreover, they prefer private to public approaches and would not support efforts to reduce the severity of cases of illness over risk reductions.

Originality/value

This study is the first research that allows a comparison of survey respondents’ choices between public and private mechanisms for ex ante risk reductions.

Details

Preference Measurement in Health
Type: Book
ISBN: 978-1-78441-029-2

Keywords

Article
Publication date: 8 May 2018

Brano Glumac and Thomas P. Wissink

This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is…

Abstract

Purpose

This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is relatively unknown. Considering that expected lifespan of photovoltaic systems is at least 25 years, it is likely that many dwellings with a photovoltaic system will enter the housing market.

Design/methodology/approach

Few houses with installed photovoltaic systems have been sold in the market to date. Lack of real market data imposes a method based on the stated preference data. Therefore, the general preferences toward photovoltaic systems are determined by a discrete choice model based on responses of 227 homebuyers in the Eindhoven region, The Netherlands. Further, the model estimates were used to assess the indirect willingness to pay for home photovoltaic systems. This initial willingness to pay is further reassessed with the direct willingness to pay collected in an open-ended questionnaire format.

Findings

Results of the model show that the homebuyers’ preferences for home photovoltaic systems are large and significant. In addition to general preferences, this article reports on the taste heterogeneity carried out by separating observations based on the respondents’ characteristics. For example, photovoltaic systems are more appealing to homebuyers in more urban or central neighbourhoods. Further, the results of the direct survey lead to the conclusion that people are probably willing to pay close to the replacement value of the system and only 22 per cent of all respondents did not want to pay anything for the installed photovoltaic system.

Research limitations/implications

These findings are exploratory and they raise a number of questions for further investigations, such as those regarding the real estate value of the installed photovoltaic systems. The reported findings must be regarded as local, thus further research is necessary to understand the impact on European housing markets.

Practical implications

Preferences and willingness to pay for home photovoltaic systems can provide a variety of economic, social and political recommendations to different interested parties such as homeowners, buyers, realtors, retailers, energy companies and governments. For instance, a homeowner would like to know what would be the effect of a photovoltaic system on the housing market.

Originality/value

As per the knowledge of authors, this is the first paper to estimate the impact of an installed photovoltaic system on housing choice, measured by stated choice data in the local housing market. It expands the existing body of knowledge for increasingly important issues of valuing and measuring preferences for photovoltaic systems installed on dwellings.

Details

Journal of European Real Estate Research, vol. 11 no. 1
Type: Research Article
ISSN: 1753-9269

Keywords

Article
Publication date: 26 July 2021

Khalid Joya, Nurul Nadia Ramli, Mad Nasir Shamsudin and Nitty Hirawaty Kamarulzaman

Consumers are giving greater attention to the selection of food due to the improvement in income and urbanization. Meanwhile, in recent years, the vegetables' farmers in Malaysia…

Abstract

Purpose

Consumers are giving greater attention to the selection of food due to the improvement in income and urbanization. Meanwhile, in recent years, the vegetables' farmers in Malaysia have been reported using an excessive quantity of pesticides. The vegetables exported to Singapore and China have been rejected in 2018 and 2017 due to the presence of excessive levels of pesticides. Such incidences have created massive concern to improve the safety standard of the vegetable industry. The purpose of this paper is to evaluate consumers' willingness to pay for food safety attributes of tomato.

Design/methodology/approach

Discrete choice experiments has been used, and 490 respondents have completed the survey.

Findings

Results suggested that consumers were willing to pay RM4.18 more for wholesome tomato relative to slightly damage tomato. Consumers also were willing to pay RM2.75 more for organic tomato relative to inorganic tomato. They were also willing to pay RM2.30 and RM1.29 more for certified and tomato sold at supermarket relative to uncertified and tomato sold at the wet market, respectively. The willingness to pay for safety attributes of tomato also varied according to the income, age and education level of the consumers.

Research limitations/implications

If the farmers can respond effectively to the changes in consumers demand, it can be translated into business opportunities.

Originality/value

This research able to provide relevant information related to the consumers' willingness to pay for food safety attributes of tomato in Malaysia.

Details

British Food Journal, vol. 124 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 12 January 2015

Rodrigo R. Soares

Negative effects of crime encompass several different dimensions. As a result, there is no existing methodology capable of dealing with all the relevant issues simultaneously and…

1126

Abstract

Purpose

Negative effects of crime encompass several different dimensions. As a result, there is no existing methodology capable of dealing with all the relevant issues simultaneously and the interpretation of the estimates currently available lacks theoretical foundation. The purpose of this paper is to provide a unified view of the meaning and relationship between the various dimensions of the welfare cost of crime and violence available in the literature.

Design/methodology/approach

The paper develops a theoretical model of crime and illustrates the different interpretations of welfare costs of crime and violence within this unified framework. This theoretical benchmark is then used as a benchmark to review the empirical literature on the topic.

Findings

The analysis suggests that the most commonly estimated dimension of the welfare cost of crime − related to the total loss associated with crime − although relevant as an illustrative tool, is not very useful from a policy perspective. The literature should therefore move closer to the idea of estimating marginal costs and benefits in order to become policy relevant.

Research limitations/implications

Policy-oriented research related to optimal law enforcement should move in the direction of estimating the marginal willingness to pay of individuals for reductions in crime. This should be compared to the marginal cost of alternative policies in order to guide public policy in the area.

Originality/value

This survey rationalizes in economic terms the estimates from the existing methodologies, highlights some of their limitations, and points out potential directions for future research. It provides one of the first unified views of the various dimensions of welfare cost of crime and violence that have been presented in the literature.

Details

Journal of Economic Studies, vol. 42 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 26 August 2014

Li-Wei Mai

In recent years, there has been a big increase in the use of ethical attributes as marketing appeals. The purpose of this paper is to examine consumers’ willingness to pay for…

4165

Abstract

Purpose

In recent years, there has been a big increase in the use of ethical attributes as marketing appeals. The purpose of this paper is to examine consumers’ willingness to pay for three selected ethical attributes, namely “Organic”, “Recyclable Packaging” and “Fairtrade” in monetary terms.

Design/methodology/approach

A modified choice-based experimental design with manipulation of the key constructs was used to estimate the mean value of how much consumers are willing to pay for the selected attributes attached to a box of premium chocolates. The results are based on the responses of a total of 208 consumers.

Findings

Of the three attributes, “Recyclable Packaging” has the strongest influence on the purchase decision, although this attribute generates the least additional value. The aggregated result shows that although consumers are willing to pay more for the product with ethical attributes than the one that is without, still around a half of them are not willing to pay more. In terms of demographics, the results show no significant differences between the two genders or different age groups in their willingness to pay for ethical attributes. As might be expected, willingness to pay was correlated with the level of consciousness of the ethical attributes.

Originality/value

The findings of this study help management to think practically about the value consumers willing to pay for the selected attributes. The results show a significant synergy in a combination of ethical attributes in products.

Details

Marketing Intelligence & Planning, vol. 32 no. 6
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 11 May 2015

Yaowarat Sriwaranun, Christopher Gan, Minsoo Lee and David A Cohen

– The purpose of this paper is to investigate factors affecting consumers’ willingness to pay (WTP) a premium for organics.

4302

Abstract

Purpose

The purpose of this paper is to investigate factors affecting consumers’ willingness to pay (WTP) a premium for organics.

Design/methodology/approach

A self-administered questionnaire was used to collect data at five retail stores in metropolitan Bangkok. Exploratory factor analysis and the double-bound contingent valuation method were used for analysis.

Findings

Results indicate WTP premiums of 88, 51 and 51 per cent for kale, jasmine rice and pork, respectively. Analysis indicates that respondents are willing to pay a premium if they have already purchased organic products, have good health, strong ethical and environmental concerns, think that organic products provide greater quality and health benefits, and reside in the city. Respondents with children, however, are less likely to pay a premium for organic products. Analysis also indicates that the price premium hinders purchase.

Practical implications

Efforts should be made by policymakers, together with marketers and producers, to lower the price of organic products to attract more consumers.

Originality/value

To enlarge the organic market, one must understand consumers’ preferences for organic products and the premium they will pay for them. This is not well-researched. Though several studies have investigated consumers’ behaviour towards environmentally friendly products in Thailand, there is little research on WTP. This lack is a major impediment to the growth of organic consumption and the development of organic product markets.

Details

International Journal of Social Economics, vol. 42 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 16 February 2024

Ganesh Thapa, Yam Kanta Gaihre and Dyutiman Choudhary

The purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.

Abstract

Purpose

The purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.

Design/methodology/approach

We surveyed 619 households from six districts and assessed farmers’ WTP for urea, diammonium phosphate (DAP) and muriate of potash (MOP) during the fertilizer crisis. Our study elicited the WTP for fertilizers when fertilizers were not available on the market. A modified payment card approach was used to elicit farmers’ WTP.

Findings

The study found that farmers who buy fertilizer from agrodealers, buy from gray markets, have bank accounts, are willing to take a risk, have strong or medium economic conditions and incur higher travel costs have a higher WTP for fertilizers. Farmers in sampled areas, on average, are willing to pay 31 percent more for urea, 13 percent more for DAP and 19 percent more for MOP than the government recommended fertilizer price.

Research limitations/implications

The design of the payment card and the estimation techniques used to fit the valuation function are likely to influence WTP.

Originality/value

Overall, literature on households’ WTP for fertilizers in developing countries is scarce. Our study contributes to the knowledge of WTP for fertilizers.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

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