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Contingent Valuation of First‐Time Sewerage Provision in South‐East England
Author(s) -
McMahon P.,
Moran D.,
Sutherland P.,
Simmonds C.
Publication year - 2000
Publication title -
water and environment journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.437
H-Index - 37
eISSN - 1747-6593
pISSN - 1747-6585
DOI - 10.1111/j.1747-6593.2000.tb00261.x
Subject(s) - sewerage , contingent valuation , amenity , valuation (finance) , business , cost–benefit analysis , private sector , environmental planning , economics , natural resource economics , finance , environmental engineering , environmental science , willingness to pay , economic growth , ecology , biology , microeconomics
Section 101A of the Water Industry Act 1991 requires that sewerage undertakers provide a public sewer to replace private wastewater systems if certain conditions are met. These include identification of pollution and amenity problems attributable to the private systems and economic justification of public sewer provision. Economic justification necessitates that the costs and the benefits of public sewer provision are compared. An environmental valuation study, using the contingent valuation method, has been carried out in three locations in south‐east England to provide the average monetary value of the benefits accruing to households with unsatisfactory private systems. A statistical analysis of the survey‐response data has yielded a monetary value which can be used in the assessment of the benefits of first‐time public sewerage schemes.