Levers supporting tariff growth for water services: evidence from a contingent valuation analysis

Valuing drinking water quality after a PFAS contamination event: Results from a meta-analysis benefit transfer

Drawing upon an extensive body of valuation literature focused on water quality, this paper performs a meta-analysis benefit transfer exercise aimed at quantifying willingness to pay (WTP) for an enhancement in drinking water quality for households that have been directly exposed to Perfluoroalkyl Substances (PFAS) over recent decades in Italy. The analysis compiles metadata of 72 WTP estimates extracted from 40 previous valuation studies conducted in advanced economies. The benefit transfer is realized estimating a meta regression model (MRM) which includes both study design and socio-economic explanatory variables, according to the Weak Structural Utility Theoretic approach. To determine the most suitable MRM specification, a comparative evaluation of various model configurations is developed exploiting the Least Absolute Shrinkage and Selection Operator (LASSO) selection criterion, and assessing their predictive performances in terms of transfer error and explanatory power. The mean transfer error (MTE) and the adjusted R-squared of the preferred MRM are in line with past published meta-analyses (0.665 and 0.607, respectively). The parameters estimated in the model align with both economic theory and intuition. The benefit transfer process results in an estimated annual WTP of € 250.80 per household for improved drinking water quality in the PFAS-affected area and an aggregated value of social benefits from PFAS decontamination of around € 12 million.

Willingness to Pay for Improved Water Supply Services Based on Asset Management: A Contingent Valuation Study in South Korea

The pressure on water infrastructure has increased due to an increase in the number of aging water pipes. Aging pipes are prone to failure, causing significant financial losses and service disruptions. The increasing number of aged pipes and limited budget for pipe rehabilitation or replacement necessitates water infrastructure asset management to ensure sustainable water supply services. In this study, contingent valuation was used to estimate the willingness to pay (WTP) and value improved water supply services through the implementation of asset management. To estimate the WTP at the individual and county levels, we performed a nationwide survey including eight provinces and 24 counties/cities with distinct water supply service performances. At the individual level, the median WTP estimated using the double-bounded dichotomous choice model was 249.50 KRW/month (0.22 USD/month). The results showed that high-level satisfaction of customers with water supply services and positive price perception of water bills resulted in a high WTP. At the county level, decreasing water supply service performances were associated with a low WTP, indicating that proper interventions by local utilities are required to achieve sustainable water supply services. Our results provide a quantitative basis for decision-making in implementation of water infrastructure asset management.

Assessing the quality of service for drinking water supplies in rural settings: A synthetic index approach

In rural settings, the presence of water supply infrastructure does not guarantee that people will have access to dependable and high-quality drinking water. To evaluate deficiencies, an assessment of quality of service of rural drinking water supply systems (RDWSS) should be examined from a multi-criteria perspective, one that integrates economic, technical, administrative, and operational components of supplying water, which includes a variety of stakeholders to integrate their preferences in the development of a synthetic index. In this study, we followed a pioneering approach to evaluate the quality of service for RDWSS based on analytic hierarchy process (AHP) and Monte Carlo simulations. We empirically applied the approach to 40 RDWSS in Chile. The weights of a set of 14 performance indicators were allocated by representatives of the communities that manage the RDWSS and experts on technical and administrative issues revelling the different preferences of decision-makers. We found that there are significant differences in the quality of service provided by the RDWSS evaluated. The information provided by the synthetic indicator would be very helpful in supporting decision makers needing to prioritize investments among drinking water supplies in rural settings.

Restructuring a Water Distribution Network through the Reactivation of Decommissioned Water Tanks

Water resource management is a topic of great environmental and social relevance, since water must be preserved and managed to avoid waste, providing high quality service at fair tariffs for the consumer, as imposed by the European Water Directive (2000/CE). In the rehabilitation of a water distribution network, it may be suitable to recover decommissioned water tanks, if any, rather than afford high construction costs to build new ones. In this case, the assessment of the residual service life of these concrete structures affected by steel bar corrosion is the premise for the design of new pipeline routes, connecting them. For this aim, rather than carrying tests that can accurately determine mechanical properties of the dismissed water tanks, it is possible to empirically estimate their level of degradation. Their conditions infer on the expected life of the restructured water distribution network. However, they allow the aqueduct to be used for its technical duration, assumed to be equal to the decommissioned water tanks residual service life in the case they do not require maintenance. Here, a simplified model for the assessment of the residual service life of decommissioned water tanks is first proposed and then applied to a case study, consisting of a part of the water network managed by “Ausino S.p.A. Servizi Idrici Integrati”, Cava de’ Tirreni, Italy. Once the service life is assessed, the QEPANET plugin is used in QGIS to speed up the design of the new pipeline routes in the georeferenced space, thus overcoming the limits offered by the classic EPANET solver.

Zootechnical Farm Wastewaters in Ecuador: A Treatment Proposal and Cost-benefit Analysis

This paper presents and discusses the results of a study carried out in Ecuador, where the zootechnical sector represents one of the country’s most important economic activities. It is, however, the source of many environmental problems, including the release of untreated liquid effluents and odorous emissions, and the production and disposal of solid wastes. The main aim of this study was to propose a treatment train for the zootechnical farm wastewater, combining natural systems (i.e., lagoons and subsurface flow beds) with conventional technologies and a cost-benefit analysis. With reference to a specific case study, the different steps of the treatment train were designed and the corresponding construction, operational and maintenance costs evaluated. To better assess the technical and economic feasibility of such a proposal, a cost-benefit analysis was carried out. The social benefit was evaluated by means of the contingent valuation method and a focus on the methodology and collected results was reported. The main findings discussed, in terms of selected treatments, their costs, and the financial and economic analysis of the project, could be useful for administrators, decision-makers and all technicians involved in planning and management of zootechnical farm wastewaters in developing countries, in particular in Latin America.

Use of facebook to engage water customers: A comprehensive study of current U.K. and Australian practices and trends

Given regulatory developments, it is imperative that water businesses implement effective customer engagement strategies. Among other options, Facebook offers enormous potential given the ability to connect with customers, involve customers in the co-creation of content, obtain real-time feedback on customer preferences and promote water conversation behaviours. This paper examines how effectively 20 large Australian and U.K. water businesses are using Facebook to engage customers. It also identifies how these firms can improve Facebook engagement by optimising posts type, timing, content, frequency and other factors. The total sample included more than 300,000 responses to nearly 17,000 posts between 2010 and 2017. Rapid growth in the utilisation of Facebook by water businesses was observed given the number of posts and customers engaging with this content. The results of the analysis of popular posts identified innovative ways some water businesses are using Facebook posts to promote the health benefits of tap water consumption, water conservation behaviours and responsible wastewater practices. Despite the trends, most firms still make less than one post per day and of those customers who have engaged, most have done with a single response. Further analysis revealed that few posts, and only a relatively small number of customer comments, pertained to water pricing matters. To promote engagement, water businesses must improve post regularity, the degree to which they moderate Facebook discussion, the utilisation of videos and photos, and further consider the underlying content of posts.