Willingness to Pay for Rainwater Harvesting System in Mexico City

This study presents the results of a discrete choice experiment (DCE) to measure the willingness to pay (WTP) for rainwater harvesting systems at the household level in Mexico City. In 2020, we conducted a field survey to estimate WTP for this type of system in the boroughs of Mexico City with medium levels of marginalization. We estimated WTP using various payment options (credit cards, wire transfer, supermarkets and government offices) and considered deferred payment plans, as well as the maintenance time required for the system. We found that credit cards were the preferred payment method, that WTP through deferred payments was low, and that results regarding maintenance time were inconclusive. In addition, differences in gender and educational attainment were found to influence WTP. The mean WTP is $614 USD for a household with a typical user profile. The results indicate that rainwater harvesting systems were not cost-effective in most cases if their cost of public water supply systems. This paper contributes to knowledge of willingness to pay for rainwater harvesting systems, as well as their economic viability in Mexico City. Although the program has the potential to reduce household dependency on the public system, these systems are currently not profitable for most households. They are not a solution to water supply shortages, yet can contribute to climate change adaptation efforts. Additionally, the time required for maintenance and its associated costs are crucial factors in the continued use of the systems.