IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v18y2021i9p4462-d541545.html
   My bibliography  Save this article

Will Households Invest in Safe Sanitation? Results from an Experimental Demand Trial in Nakuru, Kenya

Author

Listed:
  • Rachel Peletz

    (The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA)

  • Caroline Delaire

    (The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA)

  • Joan Kones

    (The Aquaya Institute, P.O. Box 21862-00505, Nairobi 00100, Kenya)

  • Clara MacLeod

    (The Aquaya Institute, P.O. Box 21862-00505, Nairobi 00100, Kenya)

  • Edinah Samuel

    (The Aquaya Institute, P.O. Box 21862-00505, Nairobi 00100, Kenya)

  • Alicea Easthope-Frazer

    (The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA)

  • Ranjiv Khush

    (The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA)

Abstract

Unsafe sanitation is an increasing public health concern for rapidly expanding cities in low-income countries. Understanding household demand for improved sanitation infrastructure is critical for planning effective sanitation investments. In this study, we compared the stated and revealed willingness to pay (WTP) for high-quality, pour-flush latrines among households in low-income areas in the city of Nakuru, Kenya. We found that stated WTP for high-quality, pour-flush latrines was much lower than market prices: less than 5% of households were willing to pay the full costs, which we estimated between 87,100–82,900 Kenyan Shillings (KES), or 871–829 USD. In addition, we found large discrepancies between stated and revealed WTP. For example, 90% of households stated that they would be willing to pay a discounted amount of 10,000 KES (100 USD) for a high-quality, pour-flush latrine, but only 10% of households redeemed vouchers at this price point (paid via six installment payments). Households reported that financial constraints (i.e., lack of cash, other spending priorities) were the main barriers to voucher redemption, even at highly discounted prices. Our results emphasize the importance of financial interventions that address the sizable gaps between the costs of sanitation products and customer demand among low-income populations.

Suggested Citation

  • Rachel Peletz & Caroline Delaire & Joan Kones & Clara MacLeod & Edinah Samuel & Alicea Easthope-Frazer & Ranjiv Khush, 2021. "Will Households Invest in Safe Sanitation? Results from an Experimental Demand Trial in Nakuru, Kenya," IJERPH, MDPI, vol. 18(9), pages 1-16, April.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:9:p:4462-:d:541545
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/18/9/4462/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/18/9/4462/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Soumya Balasubramanya & Barbara Evans & Richard Hardy & Rizwan Ahmed & Ahasan Habib & N S M Asad & Mominur Rahman & M Hasan & Digbijoy Dey & Louise Fletcher & Miller Alonso Camargo-Valero & Krishna Ch, 2017. "Towards sustainable sanitation management: Establishing the costs and willingness to pay for emptying and transporting sludge in rural districts with high rates of access to latrines," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-20, March.
    2. Sheillah Simiyu & Mark Swilling & Richard Rheingans & Sandy Cairncross, 2017. "Estimating the Cost and Payment for Sanitation in the Informal Settlements of Kisumu, Kenya: A Cross Sectional Study," IJERPH, MDPI, vol. 14(1), pages 1-16, January.
    3. Foreit, James R. & Foreit, Karen G. Fleischman, 2003. "The reliability and validity of willingness to pay surveys for reproductive health pricing decisions in developing countries," Health Policy, Elsevier, vol. 63(1), pages 37-47, January.
    4. Zachary Burt & Rachel Sklar & Ashley Murray, 2019. "Costs and Willingness to Pay for Pit Latrine Emptying Services in Kigali, Rwanda," IJERPH, MDPI, vol. 16(23), pages 1-18, November.
    5. Tidwell, James B. & Terris-Prestholt, Fern & Quaife, Matthew & Aunger, Robert, 2019. "Understanding demand for higher quality sanitation in peri-urban Lusaka, Zambia through stated and revealed preference analysis," Social Science & Medicine, Elsevier, vol. 232(C), pages 139-147.
    6. Ahlheim, Michael, 1998. "Contingent valuation and the budget constraint," Ecological Economics, Elsevier, vol. 27(2), pages 205-211, November.
    7. Whittington, Dale & Briscoe, John & Mu, Xinming & Barron, William, 1990. "Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 293-311, January.
    8. Acey, Charisma & Kisiangani, Joyce & Ronoh, Patrick & Delaire, Caroline & Makena, Evelyn & Norman, Guy & Levine, David & Khush, Ranjiv & Peletz, Rachel, 2019. "Cross-subsidies for improved sanitation in low income settlements: Assessing the willingness to pay of water utility customers in Kenyan cities," World Development, Elsevier, vol. 115(C), pages 160-177.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rachel Peletz & Clara MacLeod & Joan Kones & Edinah Samuel & Alicea Easthope-Frazer & Caroline Delaire & Ranjiv Khush, 2020. "When pits fill up: Supply and demand for safe pit-emptying services in Kisumu, Kenya," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-21, September.
    2. Deutschmann, Joshua W. & Postepska, Agnieszka & Sarr, Leopold, 2021. "Measuring willingness to pay for reliable electricity: Evidence from Senegal," World Development, Elsevier, vol. 138(C).
    3. Acey, Charisma & Kisiangani, Joyce & Ronoh, Patrick & Delaire, Caroline & Makena, Evelyn & Norman, Guy & Levine, David & Khush, Ranjiv & Peletz, Rachel, 2019. "Cross-subsidies for improved sanitation in low income settlements: Assessing the willingness to pay of water utility customers in Kenyan cities," World Development, Elsevier, vol. 115(C), pages 160-177.
    4. Van Houtven, George L. & Pattanayak, Subhrendu K. & Usmani, Faraz & Yang, Jui-Chen, 2017. "What are Households Willing to Pay for Improved Water Access? Results from a Meta-Analysis," Ecological Economics, Elsevier, vol. 136(C), pages 126-135.
    5. Michael Ahlheim & Oliver Frör & Antonia Heinke & Alwin Keil & Nguyen Minh Duc & Pham Van Dinh & Camille Saint-Macary & Manfred Zeller, 2008. "Landslides in mountainous regions of Northern Vietnam: Causes, protection strategies and the assessment of economic losses," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 298/2008, Department of Economics, University of Hohenheim, Germany.
    6. Kamuanga, Mulumba & Swallow, Brent M. & Sigue, Hamade & Bauer, Burkhard, 2001. "Evaluating contingent and actual contributions to a local public good: Tsetse control in the Yale agro-pastoral zone, Burkina Faso," Ecological Economics, Elsevier, vol. 39(1), pages 115-130, October.
    7. John P. Hoehn & Douglas J. Krieger, 2000. "An Economic Analysis of Water and Wastewater Investments in Cairo, Egypt," Evaluation Review, , vol. 24(6), pages 579-608, December.
    8. Agossadou, A.J. & Fiamohe, R. & Tossou, H. & Kinkpe, T., 2018. "Agribusiness opportunities for youth in Nigeria: Farmers perceptions and willingness to pay for mechanized harvesting equipment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277553, International Association of Agricultural Economists.
    9. Amandine Laré & Anne Briand & Eric Kéré, 2018. "Access to sanitation in precarious districts of Ouagadougou [L'accès à l'assainissement dans les quartiers précaires de Ouagadougou]," Post-Print hal-02430413, HAL.
    10. Julien Milanesi, 2011. "Une histoire de la méthode d'évaluation contingente," Post-Print hal-01531153, HAL.
    11. Ahuja, Vinod & McConnell, Kenneth E. & Umali-Deininger, Dina & de Haan, Cornelis, 2003. "Are the Poor Willing to Pay for Livestock Services? Evidence from Rural India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 58(1), March.
    12. Ahlheim, Michael & Schneider, Friedrich, 2013. "Considering Household Size in Contingent Valuation Studies," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79974, Verein für Socialpolitik / German Economic Association.
    13. Ukwueze Ezebuilo & Ogujiuba Kanayo & Adenuga Adeniyi, 2005. "How Useful Is Contingent Valuation Of The Environment To Water Services? Evidence From South East, Nigeria," Econometrics 0512012, University Library of Munich, Germany.
    14. Céline Nauges & Caroline Berg, 2009. "Demand for Piped and Non-piped Water Supply Services: Evidence from Southwest Sri Lanka," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(4), pages 535-549, April.
    15. Ogunmodede, Adewale M. & Tambo, Justice A. & Adeleke, Adetunji T. & Gulak, Dominic M & Ogunsanwo, Mary O., 2021. "Farmers' willingness to pay towards the sustainability of plant clinics: Evidence from Bangladesh, Rwanda and Zambia," 2021 Conference, August 17-31, 2021, Virtual 315074, International Association of Agricultural Economists.
    16. Jean-Louis Arcand & Linguère M'Baye, 2011. "Braving the waves: The economics of clandestine migration from Africa," CERDI Working papers halshs-00575606, HAL.
    17. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    18. Heather C. Galada & Patrick L. Gurian & Franco Montalto & Mimi Sheller & Michael Piasecki & Tibebu B. Ayalew & Steve O'Connor, 2013. "Attitudes toward post-earthquake water and sanitation management and payment options in Leogane, Haiti," Water International, Taylor & Francis Journals, vol. 38(6), pages 744-757, October.
    19. Paola A. Torres-Slimming & Carlee Wright & Cesar P. Carcamo & Patricia J. Garcia & IHACC Research Team & Sherilee L. Harper, 2019. "Achieving the Sustainable Development Goals: A Mixed Methods Study of Health-Related Water, Sanitation, and Hygiene (WASH) for Indigenous Shawi in the Peruvian Amazon," IJERPH, MDPI, vol. 16(13), pages 1-17, July.
    20. Jaina, Avinash & Chandrab, Girish & Nautiyalb, Raman, 2017. "Valuating intangible benefits from afforested areas: A case study in India," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 17(01), June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:18:y:2021:i:9:p:4462-:d:541545. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.