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Factors Determining Public Demand for Safe Drinking Water (A Case Study of District Peshawar)

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Author Info

  • Iftikhar Ahmad

    (Pakistan Institute of Development Economics)

  • Miraj ul Haq
  • Abdul Sattar

Abstract

Overtime per capita water availability in the world as well as in Pakistan has been declining. Water sources have depleted and become polluted therefore, now water has become a scarce good. Resultantly, the inadequate water supply, sanitation, and hygiene are rooting major environmental degradation and health damages in the country. This study was undertaken to analyze the magnitude of awareness, perception, practices, and demand for safe drinking water. The study further elaborated HHs Willingness to Pay (WTP) for improved water quality and services in district Peshawar of NWFP, Pakistan. Primary data was collected from 315 HHs which consist 2455 HH members from district Peshawar. Schooling, exposure to mass media, HH income and occurrence of diarrhoeal diseases were used to measure the HHs response towards the health risks associated with contaminated water. Moreover, to find out public acceptability to government and private sector as service providers, HHs were asked two separate questions regarding their maximum willingness to pay for an improved water system by either one. Out of the sample HHs, 78.4 percent were willing to accept improved water system provided by government while relatively less HHs (55.6 percent) were WTP in the case of private company as the service provider. It is worth mentioning that according to sample about 76 percent HHs were not using any method for water purification at their homes in district Peshawar. This study empirically proved that the role of awareness besides the income constraint is the key determinants of demand for safe drinking water.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22826.

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Date of creation: Jan 2010
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Handle: RePEc:eab:develo:22826

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Keywords: water supply; environmental degradation; willingness to pay; water demand;

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References

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  1. Shogren, Jason F. & Crocker, Thomas D. & Forster, Bruce A., 1991. "Valuing Potential Groundwater Protection Benefits," Staff General Research Papers 335, Iowa State University, Department of Economics.
  2. Bryan J. Hubbell & Jeffrey L. Jordan, 2000. "Joint Production and Averting Expenditure Measures of Willingness to Pay: Do Water Expenditures Really Measure Avoidance Costs?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 427-437.
  3. Charles W. Abdalla & Brian A. Roach & Donald J. Epp, 1992. "Valuing Environmental Quality Changes Using Averting Expenditures: An Application to Groundwater Contamination," Land Economics, University of Wisconsin Press, vol. 68(2), pages 163-169.
  4. John C. Whitehead & George Van Houtven, . "Methods for Valuing the Benefits of the Safe Drinking Water Act: Review and Assessment," Working Papers 9705, East Carolina University, Department of Economics.
  5. 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.
  6. Harrington, Winston & Krupnick, Alan J. & Spofford, Walter Jr., 1989. "The economic losses of a waterborne disease outbreak," Journal of Urban Economics, Elsevier, vol. 25(1), pages 116-137, January.
  7. Faheem Jehangir Khan & Yaser Javed, 2007. "Delivering Access to Safe Drinking Water and Adequate Sanitation in Pakistan," Development Economics Working Papers 22203, East Asian Bureau of Economic Research.
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