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Sustainable Policy for Water Pricing in Kuwait

College of Business and Economics, American University of Kuwait, Salmiya 24795, Kuwait
College of Management, Mahidol University, Bangkok 10400, Thailand
Author to whom correspondence should be addressed.
Sustainability 2020, 12(8), 3257;
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.

AMA Style

Aljamal A, Speece M, Bagnied M. Sustainable Policy for Water Pricing in Kuwait. Sustainability. 2020; 12(8):3257.

Chicago/Turabian Style

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

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