Assessing the Impact of Water Contamination Events on the Willingness to Pay for Improved Water Quality in Shrinking Cities

The underutilization of water infrastructure in shrinking cities can decrease water quality and impact public perceptions of water safety. To better understand this issue, we explore the influence of water contamination events on the consumer willingness to pay (WTP) for improved water quality. This study is enabled by a survey distributed to 21 U.S. shrinking cities in 2019 (n = 521) and an evaluation using qualitative content analyses and statistical modeling. Respondents with knowledge of water contamination events within their city had a WTP (15.4%) higher than that of those without knowledge of such events (9.1%). Additionally, respondents aware of nationwide water contamination events had a WTP (14.6%) that was higher than that of those unaware of such events (13.8%). The most referenced water contamination events were do-not-drink advisories or reports of chemical contamination. Tobit regression models were used to determine statistically significant parameters affecting the WTP for improved water quality. Notably, statistically significant parameters impacting WTP were different for those aware of water contamination events versus those that were unaware, highlighting the impact of water contamination events on residents' WTP. These results can help water utilities enable public participation in decision-making processes and gain support for policy changes for water quality improvements.

Automated summary

The underutilization of water infrastructure in shrinking cities can have negative impacts on water quality and public perception of water safety. A study found that people who are aware of water contamination events are more willing to pay for improved water quality. Different factors affect the willingness to pay for those who are aware and unaware of such events.