Economic evaluation of bottled water consumption as an averting means: Evidence from a hedonic price analysis

Document Type

Article

Publication Date

4-1-2008

Abstract

This study alerts researchers and policy makers to the importance of the price effect of bottle size in an economic evaluation of using bottled water as a means to avoid health risks from drinking home tap water. It derived a proxy for the economic value of smaller bottle size by analysing a hedonic price model. The results show that, by not accounting for the economic value of smaller bottle size, we can overstate consumer willingness-to-pay for safer drinking water by more than 100%.

Publication Source (Journal or Book title)

Applied Economics Letters

First Page

337

Last Page

342

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