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Identifying the demand for tap water quality: New evidence from the UK

2017-1-22, Lanz, Bruno, Provins, Allan, Lang, Ghislaine

We use the averting behavior approach to identify the demand for qualitative aspects of tap water supply, namely water hardness and aesthetic quality in terms of taste, smell and appearance. Based on a representative survey of the UK population, we find that around 14% of households show averting expenditures for water hardness and about 39% for aesthetic quality. Our results suggest that households actively respond to non-health related aspects of tap water quality, with averting behavior being directly related to water hardness and aesthetic quality.