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Reliability perceptions and water storage expenditures: Evidence from Nicaragua
Author(s) -
Vásquez William F.
Publication year - 2012
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/2011wr011024
Subject(s) - tobit model , reliability (semiconductor) , water storage , perception , service (business) , water supply , household income , business , environmental economics , economics , marketing , environmental science , econometrics , engineering , psychology , environmental engineering , civil engineering , mechanical engineering , power (physics) , physics , quantum mechanics , neuroscience , inlet
Storing water at home has become a common practice in many areas with water delivery systems in developing countries. However, little is known about which factors motivate households to expend on water storage devices. Instrumental variable Tobit models are estimated to investigate the relationship between perceptions of water supply reliability and household expenditures on water storage devices in León, Nicaragua. Findings indicate that almost 80% of households use at least one storage device on which they expend an average of 0.87% of their income. Results show that reliability perceptions are the main factor driving household expenditures on storage devices, followed by home ownership and household income. Findings also indicate that reliability perceptions are associated with service performance and assessment of service hours relative to peers.