scholarly journals Evaluation of willingness to pay toward improving water supply services in Sebeta town, Ethiopia

Author(s):  
Hosea Mutanda Eridadi ◽  
Inagaki Yoshihiko ◽  
Esayas Alemayehu ◽  
Moses Kiwanuka

Abstract Sebeta town is one of the rapidly growing towns in Ethiopia. Its closeness to Addis Ababa city has attracted industrial, urban development, and population growth. This development has created problems with drinking water shortages in the community. This study aimed at determining the household's willingness to pay (WTP) amount toward improving water supply services and analyzing the influencing factors of WTP. A contingent valuation (CV) technique was applied in quantifying the households' WTP and the influencing factors toward the program. The field observations, key informant interviews, and household questionnaire interviews from 250 respondents out of the targeted 280 were employed in collecting field data. Results from CV revealed that 66% of the households were WTP toward improving the water supply services beyond their current monthly water bills. Households were WTP about 20 Ethiopian Birr (ETB) above the average current water bill of 161 ETB. The binary logistic model results statistically demonstrated that independent variables of gender, age, marital status, education level, years in Sebeta, and average monthly income were significantly influencing the household's WTP at p = 0.01 and 0.05. This study provides vital hints for further research and baseline information for local administration and communities about the water supply in the area and holistic appropriation of water tariffs in line with government policy.

2020 ◽  
Vol 4 (1) ◽  
pp. 86-99
Author(s):  
S.N. Singh

The purpose of the article is to analyze and determine the willingness of citizens to pay for improving the quality of water services (the income derived from the consumption of water services does not cover the costs of providing such services). The study focuses on Ethiopia’s metropolitan areas (including households in town Mettu), as it is the problem of financial scarcity in Ethiopia that is particularly relevant and access to water services is a key component in calculating the human poverty index for most developing countries. Based on a survey of 79 Mettu town households, it is justified that residents view water not as a public good but as an economic good, as they are prepared to pay for it. The survey concluded that an average of 69% of Mettu households is willing to pay for improved water quality, with household income, water supply satisfaction, and supply price having a strong impact on households’ willingness to pay for improved water services. In particular, the older the locals are and the higher their income level, the more they are willing to pay for improved water quality and security of water supply. At the same time, rising levels of education in Mettu residents reduce their willingness to incur additional financial costs, more educated people view water services as a boon to the authorities. The results of the study proved that while providing local authorities with high-quality water supply services, more than 80% of households are ready and able to pay for services at a price that exceeds the tariff rate for water supply costs. The article stated that increasing the quality of water supply services by increasing the number of tariffs for water use will contribute to the growth of the financial revenues of local authorities, which will ensure the provision of water supply in the required quantity and on a stable basis. Keywords: improved water supply services, willingness, bidding Prices and tariff structure.


2016 ◽  
Vol 16 (6) ◽  
pp. 1721-1734 ◽  
Author(s):  
Rui Marques ◽  
Pedro Carvalho ◽  
João Pires ◽  
Ana Fontainhas

Cape Verde is an African country where consumers pay one of the highest tariffs for water supply services in the world. However, the current levels of service coverage and quality are still far from adequate, as acknowledged by local authorities and international agencies. Thus, an assessment of how much Cape Verdean households are willing to pay (WTP) for service improvements is a fundamental ingredient informing sector policy formulation going forward. This is the focus of this study. Valuation functions were estimated using suitable estimation methods. The results show that, taking into consideration their current levels of expenditure with this service, households would in general not be WTP more for significant improvements in their current water supply services, and that household income and the age of the head of the household both have significant effects on their WTP.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emmanuel Kwame Nti ◽  
Camillus Abawiera Wongnaa ◽  
Nana Sampson E. Edusah ◽  
John-Eudes Andivi Bakang ◽  
Vasco Baffour Kyei

PurposeThe purpose of this paper is to support the development of effective strategies that enhance community water supply systems. The study examined service constraints and willingness to pay for better services in community-managed water supply services using empirical evidence from beneficiaries of a small-town water supply system in Ghana.Design/methodology/approachA survey design of both descriptive and exploratory research is adopted, the descriptive survey handles the quantitative aspect, while the exploratory survey handles the qualitative aspect. The authors collected data using a structured survey questionnaire from 387 beneficiaries who were public standpipe and domestic users. Descriptive statistics, Kendall's coefficient of concordance and Cragg's two-step model were the methods of analysis employed.FindingsThe respondents ranked lack of capacity (managerial) as the topmost constraint of the community-managed water system. The findings indicate that 57% of the beneficiaries were not willing to pay, whiles 43% were willing to pay. Also, results from Cragg's two-step regression model indicate that different sets of factors affect willingness-to-pay and amount-to-pay decisions. The study revealed that while a willingness-to-pay decision is influenced by income, education, marital status and customer service, the estimated-amount-to-pay decision is more influenced by income and education.Originality/valueBuilding on the empirical evidence, the findings indicated that the water and sanitation management team can increase the current fee of GH¢ 5.00/1 m3 (≈US$ 0.87) by increasing beneficiaries charge for a bucket of water from GH¢ 0.10p (≈US$ 0.017) to GH¢ 0.21p (≈US$ 0.036) for better services within the community. Importantly, the additional charge should take into consideration income and education which were noted to significantly influence the beneficiary's amount-to-pay decision for better services in the community-managed water supply system.


Water Policy ◽  
2006 ◽  
Vol 8 (5) ◽  
pp. 461-473 ◽  
Author(s):  
L. Venkatachalam

One of the major issues confronted by the agencies formulating polices for water supply projects in developing countries is how to achieve efficiency, equity and sustainability. Achieving these objectives warrants an understanding of the determinants of household behaviour towards various aspects of water supply projects, such as improved water supply services and the associated willingness to pay value for specified services. Since these determinants are site-specific in nature, it is imperative that the water supply authorities identify and accommodate these factors appropriately in water supply policies. This paper discusses the results of a case study that looked into identification of such determinants of household behavior in relation to improved water supply services in a peri-urban context in Tamil Nadu, India.


Water ◽  
2021 ◽  
Vol 13 (15) ◽  
pp. 2040
Author(s):  
Taehyeon Kim ◽  
Jihoon Shin ◽  
Jinseok Hyung ◽  
Kibum Kim ◽  
Jayong Koo ◽  
...  

The pressure on water infrastructure has increased due to an increase in the number of aging water pipes. Aging pipes are prone to failure, causing significant financial losses and service disruptions. The increasing number of aged pipes and limited budget for pipe rehabilitation or replacement necessitates water infrastructure asset management to ensure sustainable water supply services. In this study, contingent valuation was used to estimate the willingness to pay (WTP) and value improved water supply services through the implementation of asset management. To estimate the WTP at the individual and county levels, we performed a nationwide survey including eight provinces and 24 counties/cities with distinct water supply service performances. At the individual level, the median WTP estimated using the double-bounded dichotomous choice model was 249.50 KRW/month (0.22 USD/month). The results showed that high-level satisfaction of customers with water supply services and positive price perception of water bills resulted in a high WTP. At the county level, decreasing water supply service performances were associated with a low WTP, indicating that proper interventions by local utilities are required to achieve sustainable water supply services. Our results provide a quantitative basis for decision-making in implementation of water infrastructure asset management.


Water ◽  
2015 ◽  
Vol 7 (12) ◽  
pp. 3024-3039 ◽  
Author(s):  
Kamshat Tussupova ◽  
Ronny Berndtsson ◽  
Torleif Bramryd ◽  
Raikhan Beisenova

Waterlines ◽  
2004 ◽  
Vol 23 (2) ◽  
pp. 8-10
Author(s):  
Jennifer Davis ◽  
Param Iyer

2012 ◽  
Vol 7 (4) ◽  
Author(s):  
N. Rowan ◽  
E. Hecox ◽  
S. Morea

The last decade has brought many changes to Colorado's water supply outlook. Despite the recent economic recession, the state has experienced significant population growth, and Colorado's population is expected to nearly double within the next 40 years. Other pressures on Colorado's water supply include severe drought, a desire to meet multiple needs (i.e., municipal, environmental, recreational) with existing resources, and impacts to agriculture due to water shortages, urbanization, and transfers to new users. To address these challenges, the Colorado Water Conservation Board (CWCB) has undertaken a visioning process to explore solutions to these future water supply challenges. As part of this process, CWCB has led the state in identifying demand and supply strategies to meet the state's future water needs while considering agriculture and the environment. These strategies have been combined into varying portfolios that include methods such as conservation, local water projects, new Colorado River development, and agricultural transfers. This paper details the development and evaluation of these portfolios and describes stakeholder's efforts to balance meeting Colorado's water needs in the future.


Sign in / Sign up

Export Citation Format

Share Document