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

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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.

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

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References

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  1. 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.
  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.
  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. 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. Bresnahan, B.W. & Dickie, M. & Gerking, S.D., 1997. "Averting behavior and urban air pollution," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4628502, Tilburg University.
  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.
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Cited by:
  1. 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.
  2. 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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