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Determinants of Households’ Budget Allocation to Water Consumption: Evidence from Urban Pakistan

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  • Hazrat Yousaf
  • Parvez Ahmed
  • Syed Ammad Ali

Abstract

Per capita availability of water is a serious challenge for Pakistan, like other countries. The objectives of this study are to investigate the different sources of water supply use by Pakistan’s urban households, their willingness to pay and modelling the determinants of the households’ budget allocation for water consumption. The study employed Pakistan Social and Living Standards Measurement (PSLM) 2015–2016 data set, which revealed that more than 60 per cent of households rely on piped water. The result of the variable filtration plant shows that urban households take less care of their health because the tendency of filtered water use is low. The regression result shows negative effect of per capita income, and positive effect of square of per capita income reflects that measures to accelerate income will help to increase budget allocation for water supply at the households’ level. The findings call for accelerating the water filtration plants, water availability in tap and higher incomes while controlling the population size and shared common washroom can help to save water in the case of urban Pakistan.

Suggested Citation

  • Hazrat Yousaf & Parvez Ahmed & Syed Ammad Ali, 2020. "Determinants of Households’ Budget Allocation to Water Consumption: Evidence from Urban Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 21(2), pages 281-294, September.
    • Handle: RePEc:sae:soueco:v:21:y:2020:i:2:p:281-294
    DOI: 10.1177/1391561420968549
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    References listed on IDEAS

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    1. Aminou Arouna & Stephan Dabbert, 2010. "Determinants of Domestic Water Use by Rural Households Without Access to Private Improved Water Sources in Benin: A Seemingly Unrelated Tobit Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(7), pages 1381-1398, May.
    2. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
    3. Sana AKHTAR & Sarah DEAN & Faiza ANJUM & Maryam JAVED, 2018. "Determination of Willingness to Pay for Improved Water Supply in Selected Areas of Lahore," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-12, June.
    4. Iftikhar Ahmad & Miraj ul Haq & Abdul Sattar, 2010. "Factors Determining Public Demand for Safe Drinking Water (A Case Study of District Peshawar)," Development Economics Working Papers 22826, East Asian Bureau of Economic Research.
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