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Domestic Water Use and Values in Swaziland: A Contingent Valuation Analysis

Author

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  • Farolfi, Stefano
  • Mabugu, Ramos E.
  • Ntshingila, S.N.

Abstract

The paper reports on the use of the contingent valuation method to study the determinants of Swazi households' willingness to pay (WTP) for an improvement in their water quantity and quality. A sample of 374 households was surveyed and a Tobit model was applied to explain household preferences for quality and quantity of domestic water supply and derive estimates of WTP for such a service. The results confirm that household income had a positive and statistically significant impact on WTP for both quality and quantity. Distance to the water source is positively associated with WTP regardless of the location (rural or urban) and of the household head's age, education, and gender. Current water consumption was also statistically significant for WTP for improved quantity, but with a negative sign, implying that the more a household consumes water, the less that household is WTP to have improved water quantity. Conversely, the same household would be WTP for improved water quality. Rural households showed a much higher WTP for improved water provision services than urban households. There is therefore scope to improve water service levels in Swaziland even at a higher water price. More precisely, the estimates of WTP obtained in this study indicate the possibility of introducing a demand-driven program to expand the coverage of rural tap water schemes.

Suggested Citation

  • Farolfi, Stefano & Mabugu, Ramos E. & Ntshingila, S.N., 2007. "Domestic Water Use and Values in Swaziland: A Contingent Valuation Analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), March.
  • Handle: RePEc:ags:agreko:10130
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    Cited by:

    1. Pour, Morteza Tahami & Kalashami, Mohammad Kavoosi, 2012. "Applying CVM for Economic Valuation of Drinking Water in Iran," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 2(3), September.
    2. repec:gam:jsusta:v:9:y:2017:i:6:p:930-:d:100351 is not listed on IDEAS
    3. Awad, Ibrahim M., 2012. "Using econometric analysis of willingness-to-pay to investigate economic efficiency and equity of domestic water services in the West Bank," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 485-494.
    4. Mvangeli Dlamini, Nqobizwe, 2015. "Households' Water Use Demand and Willingness to Pay for Improved Water Services: A Case Study of Semi-Urban Areas in the Lubombo and Lowveld Regions of Swaziland," Research Theses 243464, Collaborative Masters Program in Agricultural and Applied Economics.

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    Keywords

    Resource /Energy Economics and Policy;

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