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Estimation of Willingness to Pay for Improvements in Drinking Water Quality in Lahore: A Case Study of WASA, Lahore

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  • Noor, Junaid
  • Siddiqi, Wasif
  • Muhammad, Taj

Abstract

This study examines the existing water quality of Lahore and measures domestic household’s willingness to pay for improvement in water quality services. To this end, a Tobit model is estimated by conducting a contingent valuation survey about household perceptions in six towns of Lahore.The results show that the factors affecting household’s willingness to pay are coping costs that a household pay for ensuring quality of water also the education level of head of family is an important factor in determining the willingness to pay for improved water services. It is recommended that by ensuring the supply and quality to the household additional revenue of 4.22 million rupees could be earned by the authority.

Suggested Citation

  • Noor, Junaid & Siddiqi, Wasif & Muhammad, Taj, 2010. "Estimation of Willingness to Pay for Improvements in Drinking Water Quality in Lahore: A Case Study of WASA, Lahore," MPRA Paper 53763, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53763
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    References listed on IDEAS

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    2. Pattanayak, Subhrendu K. & van den Berg, Caroline & Yang, Jui-Chen & Van Houtven, George, 2006. "The use of willingness to pay experiments : estimating demand for piped water connections in Sri Lanka," Policy Research Working Paper Series 3818, The World Bank.
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    5. David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December.
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    7. Rosado, Marcia, 1998. "Willingness To Pay For Drinking Water In Urban Areas Of Developing Countries," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20821, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. 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).

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    More about this item

    Keywords

    Willingness to Pay; water quality; Lahore; Tobit;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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