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- Title
Water Quality Violations and Avoidance Behavior: Evidence from Bottled Water Consumption.
- Authors
Zivin, Joshua Graff; Neidell, Matthew; Schlenker, Wolfram
- Abstract
We examine the impact of poor water quality on avoidance behavior by estimating the change in bottled water purchases in response to drinking water violations. Using data from a national grocery chain matched with water quality violations, we find an increase in bottled water sales of 22 percent from violations due to microorganisms and 17 percent from violations due to elements and chemicals. Back-of-the envelope calculations yield costs of avoidance behavior at roughly $60 million for all nationwide violations in 2005, which likely reflects a significant understatement of the total willingness to pay to eliminate violations.
- Subjects
UNITED States; BOTTLED water industry; WATER quality; AVOIDANCE (Psychology); WATER quality management; CONSUMER behavior; CONSUMPTION (Economics); UNITED States economy, 2001-2009
- Publication
American Economic Review, 2011, Vol 101, Issue 3, p448
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.101.3.448