Demanda contingente por água no Distrito Federal do Brasil

Water is a consumption good with economic value. Due to its characteristics, it is essential to human, animal and vegetal life. However, water resources are progressively becoming scarce in nature. Its degradation – a result of illegal land occupation and poor sanitation – causes environmental damages, economic costs, and a welfare loss. Hence, the population is increasingly willing to pay a share of its income to have water of better quality. This phenomenon occurs with the water system of the Federal District (DF) in Brazil. In this paper we analyze the socio-economic and environmental effects on the real and contingent prices of the water from the Santa Maria/Torto system that supplies the DF region. To do so, we use a contingent analysis that evaluates the consumer’s revealed preferences. The results obtained here were used to assess the appropriate payments that would be made the water supply company to the local government.