The Opportunity Cost of Time and Averting Expenditures for Safe Drinking Water1

ABSTRACT: A survey of individuals during a Giardia contamination incident provided data to calculate the cost of boiling, hauling, or purchasing water to avoid infection. Three different approaches to the valuation of time were used to assess the implications of the opportunity cost of time for the measurement of averting costs. Mean monthly household averting costs were 33. 47 using family income to value time, 13. 07 using the minimum wage to value time, and 5. 60 using zero opportunity cost of time. Comparisons of the mean costs for different sources and household characteristics indicated the value of time from family income was too high and that the other methods of valuing time were superior.