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Assessing water company customer preferences and willingness to pay for service improvements: A stated choice analysis

Lookup NU author(s): Emeritus Professor Ken Willis


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Water and sewerage companies are regional monopolies in the UK. A government agency regulates these companies, setting standards on quality of service to customers, and every 5 years sets prices that companies can charge customers over the ensuing quinquennium. We use a stated choice experiment model to estimate benefits to water company customers of changes across 14 water service factors. The estimated values were quite similar for each service factor across models (conditional logit (CL), CL quadratic, nested logit (NL), or NL quadratic). Estimates of the cost of infrastructure maintenance and improvement with risk of asset failure, along with CL benefit estimates, permit economic optimization across the water company's whole investment program. Copyright 2005 by the American Geophysical Union.

Publication metadata

Author(s): Willis KG, Scarpa R, Acutt M

Publication type: Article

Publication status: Published

Journal: Water Resources Research

Year: 2005

Volume: 41

Issue: 2

Pages: 1-11

Print publication date: 01/02/2005

ISSN (print): 0043-1397

ISSN (electronic): 1944-7973

Publisher: American Geophysical Union


DOI: 10.1029/2004WR003277


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