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Households’ Willingness to Pay and Payments for Water Services by the Akwa Ibom Water Company Limited, Akwa Ibom State, Nigeria

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  • Ubi-Abai, Itoro

Abstract

This study assessed households’ willingness to pay and payments for water services supplied by the Akwa Ibom Water Company Limited using the Heckman two-step analysis. Using the survey research design, these households comprised households that have access to 5.06% of water supply services from the Akwa Ibom Water Company Limited a la Ubi-Abai (2024); and households that live close to the water company but do not have access to their water services. A sample of 200 households was selected using the two-stage cluster probability sampling and the purposive non-probability sampling techniques. Data were obtained using structured questionnaires. The weighted Kappa and Cronbach Alpha coefficients showed that questions in the questionnaires were valid and reliable. The cluster analysis revealed that 38 households used water efficiently. Furthermore, the Heckman two-step analysis revealed that factors such as water use efficiency, water quality, income and family size influenced households’ willingness to pay and monthly water payment levels.

Suggested Citation

  • Ubi-Abai, Itoro, 2024. "Households’ Willingness to Pay and Payments for Water Services by the Akwa Ibom Water Company Limited, Akwa Ibom State, Nigeria," MPRA Paper 122512, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122512
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    References listed on IDEAS

    as
    1. S. Trevis Certo & John R. Busenbark & Hyun‐soo Woo & Matthew Semadeni, 2016. "Sample selection bias and Heckman models in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2639-2657, December.
    2. Sartori, Anne E., 2003. "An Estimator for Some Binary-Outcome Selection Models Without Exclusion Restrictions," Political Analysis, Cambridge University Press, vol. 11(2), pages 111-138, April.
    3. Morrissey, Karyn & Kinderman, Peter & Pontin, Eleanor & Tai, Sara & Schwannauer, Mathias, 2016. "Web based health surveys: Using a Two Step Heckman model to examine their potential for population health analysis," Social Science & Medicine, Elsevier, vol. 163(C), pages 45-53.
    4. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    5. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    6. Ubi-Abai, Itoro, 2024. "Assessing the Technical Efficiency and Total Productivity of the Akwa Ibom Water Company Limited, Akwa Ibom State, Nigeria," MPRA Paper 121691, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Akwa Ibom; Heckman; Household; Water; WTP;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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