Presentation in a seminar:
Using unique survey data of about 10,000 households from 10 OECD countries, including Czech Republic, Korea and Mexico, we examine whether attitudinal characteristics towards environment and water quality perception influence the decision to drink tap water or not. Nonparametric Mokken scale analysis allows us to develop unidimensional scales that are used as independent variables in binary models of a household’s probability to drink tap water. Checking for potential endogeneity of tap water quality perception leads us to estimate a recursive bivariate probit model. Not surprisingly, the computation of the appropriate marginal effects shows strong country‐specific effects. Attitudes towards environment are found to be significant along with other attitudinal characteristics such as trust in information from national or local governments. Respondents owning their primary residence have a higher probability of choosing to drink tap water. Characteristics such as age and gender also influence the choice to drink tap water, along with tap water quality perception. As might have been expected, the latter is the most important determinant factor in the choice of drinking tap water.
Environmental Economics and Natural Resources