Risk Perception, Choice of Source and Treatment Decision: Exploring Water Consumption Behaviour in Darjeeling, India

Abstract

Using a unique dataset of 524 households from an urban hill town of Darjeeling in India, this study addresses two key issues of (a) determining the drivers of risk perception from water use, and (b) understanding whether water treatment decisions and choice of water sources are jointly made by the households. The results from probit model show that the age of the head, perception of the aesthetic qualities of water (odour and colour), education level of the head, the volume of improved water used, water treatment decision and expenditure on the water are the significant drivers of risk perception. The results of a rare investigation on the likelihood of the joint decision of treating water and choice of water source show that these decisions are indeed jointly made in the study area. Households decision to treat water from an unimproved source and the choice of improved water can be seen as substitutes.

Keywords

• water consumption, water treatment, environmental economics, bivariate probit