Impact of Terminology and Water Restrictions on Consumer Willingness to Pay for Potable Recycled Water in the U.S.

Rapidly growing human populations are increasing the strain on already stressed water resources, prompting many municipalities to consider water recycling. One barrier to the implementation of water recycling projects is the cost, for both the municipality and the consumers. This research uses a consumer choice survey of 1000 individuals in the United States to evaluate consumer willingness to pay for potable recycled water, considering the impact of terminology ("purified water," "recycled water," "reused water," "reclaimed water," and "treated wastewater") and future outdoor watering restrictions. Analysis of survey responses calculated consumer willingness to pay using mixed logit models. Results demonstrate the importance of terminology on consumer willingness to pay and the consistency of preference for the term "purified water" across cities in the United States. Consumers were also willing to pay for potable recycled water to avoid or reduce water restrictions, although the magnitude was small. Shifting from the commonly used "recycled water," a less preferred term, to "purified water" is expected to increase both consumer acceptance and willingness to pay for the exact same product. Our results demonstrate how important terminology can be in public communication and policy discussions in general and in the successful design and promotion of residential water management projects in particular.