Accounting for the non-market benefits of water supply improvements to ensure sustainability - the case of Mauritius
by Riad Sultan
International Journal of Critical Accounting (IJCA), Vol. 11, No. 4, 2020

Abstract: The paper uses a contingent valuation survey to estimate the non-market benefits of improvements in the water systems in a small island state. By conceptualising economic benefits through the willingness to pay (WTP) approach, two econometric models are estimated - a participation logit regression model focusing on the intent to contribute an amount of money and a double-bounded model analysing WTP and associated responses. The regression analysis concludes that income, age, education level and household size are important determinants of WTP. The mean WTP is estimated at 0.02% of average monthly household income. Households are willing to pay an equivalent increase of 27% in the mean water bill for a reliable water supply system, confirming significant aggregate benefits on an annual basis. The result of the study is an important component in cost-benefit analysis for water-related investments.

Online publication date: Wed, 14-Oct-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Critical Accounting (IJCA):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com