期刊
REVIEW OF ECONOMICS AND STATISTICS
卷 104, 期 6, 页码 1289-1303出版社
MIT PRESS
DOI: 10.1162/rest_a_01006
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This study utilizes the timing of water quality violations to estimate their impacts on individuals' avoidance behavior and children's outcomes, and provides a comprehensive calculation of the costs associated with poor drinking water quality. The findings suggest that individuals only avoid the negative health impacts of coliform bacteria violations when informed immediately.
Health-based drinking water violations affect about one in twelve Americans annually, yet the benefits of drinking water regulation are not well understood. I exploit plausibly exogenous variation in water quality violation timing to estimate the impacts on avoidance behavior and child outcomes. Using purchases of bottled water and common stomach remedies, emergency room visits for gastrointestinal illness, and school absences, I provide a comprehensive calculation of costs associated with poor drinking water quality. Individuals avoid the negative health impacts of coliform bacteria violations only when informed immediately. Timely public notification is a cost-effective way to induce avoidance behavior and protect health.
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