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Household’s willingness to pay for safe drinking water: A case study of Abbottabad district

Author

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  • Haq, Mirajul
  • Usman Mustafa, Usman
  • Ahmad, Iftikhar

Abstract

This study is based on survey data and used both the contingent valuation method and averting behaviour approach to capture HH's willingness to pay for services and quality in the drinking water sector. In case of the HH’s WTP for improved water services, the study estimates that there is statistically significant effect of location that in urban areas, HHs has more WTP for improved water services. The study also finds that sources of water have a significant effect on WTP i.e. the HH who have own source are willing to pay in the higher range (Rs 51–100) further tap water has significant effect on WTP for the first two quartiles. As expected, education level ignificantly affects WTP for safe drinking water.

Suggested Citation

  • Haq, Mirajul & Usman Mustafa, Usman & Ahmad, Iftikhar, 2008. "Household’s willingness to pay for safe drinking water: A case study of Abbottabad district," MPRA Paper 15208, University Library of Munich, Germany, revised Aug 2008.
    • Handle: RePEc:pra:mprapa:15208
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    Cited by:

    1. Mikhail Miklyaev & Glenn P. Jenkins & Precious P. Adeshina, 2022. "Ex-Post Evaluation of The Algerian SWRO Desalination PPP Program," Development Discussion Papers 2022-14, JDI Executive Programs.
    2. Muhammad Rahman & Sher Ali & Naveed Hayat, 2022. "Households Health Cost from Water Borne Diseases in District Swat, Khyber Pakhtunkhwa, Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(4), pages 633-646, December.
    3. Iftikhar Ahmad & Miraj ul Haq & Abdul Sattar, 2010. "Factors Determining Public Demand for Safe Drinking Water (A Case Study of District Peshawar)," PIDE-Working Papers 2010:58, Pakistan Institute of Development Economics.
    4. Armand Totouom & Sostaine Romuald Fouéka Tagne & Jonas Ngouhouo Poufoun, 2018. "Determinants of the avoidance behaviour of householdsto cope with unsafe drinking water: case study of Doualaand Yaoundé in Cameroon," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 99(2), pages 121-148.
    5. Das, Saudamini & Nepal, Mani & Rai, Rajesh K. & Bhatta, Laxmi D. & Khadayat, Madan S., 2019. "Valuing water provisioning service of Broadleaf and Chir Pine forests in the Himalayan region," Forest Policy and Economics, Elsevier, vol. 105(C), pages 40-51.
    6. Syed A. Shah & Dana L. K. Hoag & Stephen Davies, 2016. "Household preferences and willingness to pay (WTP) for freshwater quality improvement in Pakistan’s Swat River Valley," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(4), pages 1081-1093, August.
    7. Junaid Alam Memon & Junaid Ishaq & Fateh Muhammad Mari, 2020. "Public Demand for Improved Urban Water Supply Services in Multan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(1), pages 171-192.
    8. repec:aer:wpaper:345 is not listed on IDEAS
    9. repec:zib:zjhcdc:v:1:y:2021:i:4:p:56-61 is not listed on IDEAS
    10. Mahanta, Ratul & Chowdhury, Jayashree & Nath, Hiranya K., 2016. "Health costs of arsenic contamination of drinking water in Assam, India," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 30-42.
    11. Usman Mustafa & Iftikhar Ahmad & Miraj ul Haq, 2014. "Capturing Willingness to Pay and Its Determinants for Improved Solid Waste Management," PIDE-Working Papers 2014:110, Pakistan Institute of Development Economics.
    12. Shemelis Kebede Hundie & Lamessa Tariku Abdisa, 2016. "Households’ Willingness to Pay for Improved Water Supply: Application of the Contingent Valuation Method; Evidence from Jigjiga Town, Ethiopia," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(62), pages 191-214, December.
    13. Beard, Victoria A. & Mitlin, Diana, 2021. "Water access in global South cities: The challenges of intermittency and affordability," World Development, Elsevier, vol. 147(C).
    14. Sidrat Asim & Heman D. Lohano, 2015. "Households’ Willingness to Pay for Improved Tap Water Services in Karachi, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 507-526.
    15. Raheel Anjum, 2013. "Willingness to Pay for Solid Waste Management Services: A Case Study of Islamabad," CEECC Working Paper 2013:03, Pakistan Institute of Development Economics.
    16. Junaid Alam Memon & Junaid Ishaq & Fateh Muhammad Mari, 2020. "Public Demand for Improved Urban Water Supply Services in Multan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(1), pages 16-12.
    17. Rajapakshe, Sisira & Termansen, Mette & Paavola, Jouni, 2022. "Valuing Water Service Improvements through Revealed Preference: Averting Behaviour Method," MPRA Paper 115623, University Library of Munich, Germany.
    18. K. Parameswari & B. V. Mudgal & T. K. Padmini, 2016. "Awareness on usage of contaminated groundwater around Perungudi dumpsite, Tamil Nadu, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(3), pages 657-668, June.
    19. Olaoluwa Omilani & Adebayo Busura Abass & Victor Olusegun Okoruwa, 2019. "Smallholder Agroprocessors’ Willingness to Pay for Value-Added Solid-Waste Management Solutions," Sustainability, MDPI, vol. 11(6), pages 1-14, March.
    20. Herath Gunatilake & Masayuki Tachiri, 2014. "Willingness to Pay and Inclusive Tariff Designs for Improved Water Supply Services in Urban Bangladesh," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 7(5), pages 212-212, September.
    21. Armand, Totouom Fotue Luc, 2016. "Determinants of household avoidance behavior to cope with unsafe drinking water: case study of Cameroon," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249333, African Association of Agricultural Economists (AAAE).
    22. Hasan, Syed M. & Akram, Agha Ali & Jeuland, Marc, 2021. "Awareness of coping costs and willingness to pay for urban drinking water service: Evidence from Lahore, Pakistan," Utilities Policy, Elsevier, vol. 71(C).
    23. Ashagidigbi, Waheed & Amos, Timothy & Orobiyi, Abiade & Olagunju, Kehinde Oluseyi, 2021. "Awareness of and Potential Demand for Nutritionally Fortified Cassava Products," 2021 Conference, August 17-31, 2021, Virtual 315228, International Association of Agricultural Economists.
    24. Rashmi Shukla, 2021. "Government Expenditure on Drinking Water and Sanitation in Uttar Pradesh, India: An Empirical Analysis of Its Trend and Composition," Indian Journal of Human Development, , vol. 15(3), pages 515-531, December.

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    More about this item

    Keywords

    contingent valuation; averting behaviour; household survey; willingness to pay; Pakistan;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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