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Valuing water service reliability and in-home water storage
A hedonic price model from Guatemala
Leiva, B., Van Houtven, G., Vasquez, W. F., & Najera, A. (2023). Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala. Utilities Policy, 82, Article 101526. https://doi.org/10.1016/j.jup.2023.101526
Water service interruptions often impose considerable costs on water users, and lead more households to invest in in-home water storage infrastructure. Studying the value households assign to continuous water supply may help design more effective policies. Using a unique primary dataset from Guatemala City (n = 567), we estimate hedonic models of rental prices to derive marginal values of fewer water service interruptions and in-home water storage infrastructure. Results indicate that, on average, rental prices decrease by 0.7% with each day of water service interruptions and increase by 10% for housing units with storage infrastructure relative to those without it.
