TY  - JOUR
AU  - Zivin,Joshua Graff
AU  - Neidell,Matthew
AU  - Schlenker,Wolfram
TI  - Water Quality Violations and Avoidance Behavior: Evidence from Bottled Water Consumption
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16695
PY  - 2011
Y2  - January 2011
UR  - http://www.nber.org/papers/w16695
L1  - http://www.nber.org/papers/w16695.pdf
N1  - Author contact info:
Joshua S. Graff Zivin
University of California, San Diego
9500 Gilman Drive, MC 0519
La Jolla, CA 92093-0519
Tel: 858/822-6438
E-Mail: jgraffzivin@ucsd.edu

Matthew J. Neidell
Department of Health Policy and Management
Columbia University
722 W 168th Street, 6th Floor
New York, NY 10032
Tel: 212/342-4522
Fax: 212/305-3405
E-Mail: mn2191@columbia.edu

Wolfram Schlenker
Agricultural and Resource Economics
University of California at Berkeley
329 Giannini Hall
Berkeley, CA 94720
Tel: 510/643-9676
Fax: 510/643-8911
E-Mail: schlenker@berkeley.edu
AB  - In this paper, we examine the impact of poor water quality on avoidance behavior by estimating the change in bottled water purchases in response to drinking water violations.  Using data from a national grocery chain matched with water quality violations, we find an increase in bottled water sales of 22 percent from violations due to microorganisms and 17 percent from violations due to elements and chemicals.  Back-of-the envelope calculations yield costs of avoidance behavior at roughly $60 million for all nationwide violations in 2005, which likely reflects a significant understatement of the total willingness to pay to eliminate violations.
ER  -