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Sustainable Policy for Water Pricing in Kuwait

1
College of Business and Economics, American University of Kuwait, Salmiya 24795, Kuwait
2
College of Management, Mahidol University, Bangkok 10400, Thailand
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Author to whom correspondence should be addressed.
Sustainability 2020, 12(8), 3257; https://doi.org/10.3390/su12083257
Received: 16 February 2020 / Revised: 8 April 2020 / Accepted: 10 April 2020 / Published: 17 April 2020
(This article belongs to the Section Economic and Business Aspects of Sustainability)
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. View Full-Text
Keywords: willingness to pay; water pricing; subsidies; sustainability; Kuwait willingness to pay; water pricing; subsidies; sustainability; Kuwait
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MDPI and ACS Style

Aljamal, A.; Speece, M.; Bagnied, M. Sustainable Policy for Water Pricing in Kuwait. Sustainability 2020, 12, 3257. https://doi.org/10.3390/su12083257

AMA Style

Aljamal A, Speece M, Bagnied M. Sustainable Policy for Water Pricing in Kuwait. Sustainability. 2020; 12(8):3257. https://doi.org/10.3390/su12083257

Chicago/Turabian Style

Aljamal, Ali, Mark Speece, and Mohsen Bagnied. 2020. "Sustainable Policy for Water Pricing in Kuwait" Sustainability 12, no. 8: 3257. https://doi.org/10.3390/su12083257

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