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

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Author Info
Haq, Mirajul
Usman Mustafa, Usman
Ahmad, Iftikhar

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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.

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File URL: http://mpra.ub.uni-muenchen.de/15208/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15208.

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Date of creation: Mar 2008
Date of revision: Aug 2008
Publication status: Published in The Pakistan Development Review 4.46(2007): pp. 1137-1153
Handle: RePEc:pra:mprapa:15208

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Related research
Keywords: contingent valuation; averting behaviour; household survey; willingness to pay; Pakistan;

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Find related papers by 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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  1. Abrahams, Nil Adote & Hubbell, Bryan J & Jordan, Jeffrey L, 2000. " Joint Production and Averting Expenditure Measures of Willingness to Pay: Do Water Expenditures Really Measure Avoidance Costs?," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 427-37, May. [Downloadable!] (restricted)
  2. Thomas D. Crocker & Bruce A. Forster & Jason F. Shogren, 1991. "Valuing Potential Groundwater Protection Benefits," Center for Agricultural and Rural Development (CARD) Publications 91-wp71, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
  3. Whittington, Dale, et al, 1990. "Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 293-311, January.
  4. 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. [Downloadable!] (restricted)
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This page was last updated on 2009-12-1.

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