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Estimating household willingness to pay for water services in a rural economy: The case of Kanye in southern Botswana

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  • James Mbata

Abstract

This study uses the contingent valuation approach to examine the relationship between selected socio-economic characteristics of households and their willingness to pay for private water connection. An iterative bidding method was used to obtain survey data from 135 households randomly selected from Kanye in southern Botswana and the ordinary least-square regression technique was used to estimate the effects of selected exogenous variables on willingness to pay. The results show that household income, level of education and employment status of the head of the household and level of consumers' awareness are the principal factors influencing willingness. This suggests that any government policy that increases these factors will increase households' willingness. In addition, because consumers' income is associated with their willingness to pay, it is suggested that policies on connection and user fees recognise income inequalities when determining the amount that households should pay.

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  • James Mbata, 2006. "Estimating household willingness to pay for water services in a rural economy: The case of Kanye in southern Botswana," Development Southern Africa, Taylor & Francis Journals, vol. 23(1), pages 29-43.
    • Handle: RePEc:taf:deveza:v:23:y:2006:i:1:p:29-43
    DOI: 10.1080/03768350600556331
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    References listed on IDEAS

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    1. Sharma, N.P. & Damhaug, T. & Gilgan-Hunt, E. & Grey, D. & Okaru, V. & Rothberg, D., 1996. "African Water Resources; Challenges and Opportunities for Sustainable Development," Papers 331, World Bank - Technical Papers.
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    1. Mekdes Dessie & Dawit Moges & Getachew Mekonnen, 2018. "Economic Valuation of Parthenium Weed Control Measures, in Gurage Zone, SNNPR of Ethiopia," Current Investigations in Agriculture and Current Research, Lupine Publishers, LLC, vol. 4(5), pages 600-607, September.
    2. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 265580, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Awad, Ibrahim M., 2012. "Using econometric analysis of willingness-to-pay to investigate economic efficiency and equity of domestic water services in the West Bank," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 485-494.
    4. Mahmoud K. El-Jafari, 2013. "Palestinian Household Willingness and Ability to Pay for Public Utilities in The West Bank: The Case of Electricity and Water," Working Papers 784, Economic Research Forum, revised Oct 2013.
    5. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 276443, Collaborative Masters Program in Agricultural and Applied Economics.
    6. Yusep Suparman & Henk Folmer & Johan H.L. Oud, 2016. "The willingness to pay for in-house piped water in urban and rural Indonesia," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 407-426, June.

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