Willingness to pay for drinking water quality improvement and the influence of social capital

Several factors have been identified as determinants of willingness to pay (WTP), including socio-economic and environmental elements. The present article aims to investigate the influence of individual social capital on willingness to pay for environmental goods. In particular, through an empirical study, a multi-dimensional measurement of social capital is conducted and its influence on WTP for water quality improvement is explored. According to the results of the survey it is observed that social capital is a significant explanatory parameter of WTP.

Research highlights▶ Only 40% of the respondents are willing to contribute some amount for the improvement of drinking water quality. ▶ The majority of these refusals are characterized as protest responses. ▶ Social capital is positively connected with the monetary valuation of individuals for the improvement of drinking water quality.