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Carrying out Willingness to Pay Surveys

Price: £500


Ref: 11/RG/07/22
ISBN: 1 84057 607 3

This report sets out recommendations on the methodological steps for undertaking willingness to pay (WTP) surveys. These surveys are undertaken by water companies to elicit customers' preferences on aspects of service and environmental quality as part of a decision-support tool for investment planning. The report provides guidance on ways to identify and prioritise aspects to include in surveys. It offers a menu of options that might be included and recommendations on how these should be defined and presented in surveys. Guidance on other features of survey design is also provided. Where aspects are better valued through means other than WTP surveys, recommendations are provided on the best approaches to valuation. Recommendations are the result of an extensive work programme, including widespread consultation with industry stakeholders, interviews with leading global stated preference practitioners, an analytical review of companies' past surveys, qualitative testing with both residential and business customers, and interviews with industry asset planners. Project outputs include a Practitioners Guide for asset planners and others in water companies to assist them in deriving consistent, robust and reliable benefit estimates for their investment planning.

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