Unlocking transparency in water information: a discrete choice experiment design

Abstract

ABSTRACTThis study employed the discrete choice experiment (DCE) to examine consumers’ willingness to gain access to public information on water quality and the tradeoffs. We estimated that if water quality information is provided monthly, weekly, and daily, consumers are willing to pay an additional 28, 29, and 37 thousand VND per cubic metre, respectively. Consumers highly value the transparency of water quality information. High-income consumers are willing to pay more for water quality improvements and transparent water quality information. Further, having safe filter to drink water and potable tap water rather than unsafe drinking water equals an additional 5 and 7 thousand VND per cubic metre in customers’ willingness to pay. Consumers also prefer state-controlled water companies to private companies. In the case of private water companies, consumers also expect these companies to have a high level of awareness about their corporate social responsibility. The findings provide evidence that information transparency in water quality can be a powerful tool that fosters public awareness and holds water companies accountable. Consumers are willing to pay to get access to information on water quality regularly. Since technology has evolved, a digital smart monitoring solution is no longer an option but a potential or a must.Highlights – Consumers highly value the transparency of water quality information.– Consumers are willing to pay an additional 28, 29, and 37 thousand VND per cubic metre if water quality information is provided monthly, weekly, and daily.– Consumers prefer state-controlled water companies to private companies.– Consumers who are unaware of corporate social responsibility are more sensitive to the transparency of water services and willing to pay an additional 40 thousand VND for frequent transparency disclosure.– Consumers who are living in the area affected by water incident are more sensitive to the transparency of water services than those in unaffected areas.KEYWORDS: Digitalizationdiscrete choice experimentwater supply Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis research is funded by Foreign Trade University under the research programme number [FTURP-02-2020-03].