Publication: Sustainable policy forwater pricing in Kuwait
Issued Date
2020-04-01
Resource Type
ISSN
20711050
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2-s2.0-85084606363
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Mahidol University
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SCOPUS
Bibliographic Citation
Sustainability (Switzerland). Vol.12, No.8 (2020)
Suggested Citation
Ali Aljamal, Mark Speece, Mohsen Bagnied Sustainable policy forwater pricing in Kuwait. Sustainability (Switzerland). Vol.12, No.8 (2020). doi:10.3390/SU12083257 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/56173
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Title
Sustainable policy forwater pricing in Kuwait
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Abstract
© 2020 by the authors. This research investigates consumer willingness to pay (WTP) for water in Kuwait as a foundation for policy decisions on reducing water subsidies. Heavy subsidies have encouraged unsustainable very high consumption, but efforts to cut subsidies can generate strong political opposition. A survey (n = 443) indicates that WTP is greater at lower prices, but resistance is not purely about price. The presence of a continued partial water subsidy for basic household use slightly increases WTP, probably mainly from perceptions of fairness. Information about Kuwait's water scarcity also has a small impact. All of these effect sizes are small, so we discuss these issues using a nudge framework from behavioral economics. A number of policies can foster small shifts in WTP; collectively they may have larger impact and make subsidy reduction relatively painless.