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Willingness To Pay For Water Service Improvements In Middle‐Income Urban Households In South Africa: A Stated Choice Analysis

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  • J.d. Snowball
  • K.g. Willis
  • C. Jeurissen

Abstract

Water provision is not only an economic issue in South Africa, but also of social and political significance. One of the important reasons for increasing the brief of local government is so that services can be provided taking into account heterogeneous community preferences. However, measuring such preferences for water, which has some public good characteristics, is a challenge. This study elicits household willingness to pay for improvements in water attributes in Grahamstown West in the Eastern Cape, using conjoint analysis. Results show a fairly high McFadden R2 and that Bacteria Count, Discolouration, Interruptions to supply and Price are statistically significant determinants of choice. The paper also suggests ways in which the model could be adapted for use in lower income and education households.

Suggested Citation

  • J.d. Snowball & K.g. Willis & C. Jeurissen, 2008. "Willingness To Pay For Water Service Improvements In Middle‐Income Urban Households In South Africa: A Stated Choice Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 76(4), pages 705-720, December.
    • Handle: RePEc:bla:sajeco:v:76:y:2008:i:4:p:705-720
    DOI: 10.1111/j.1813-6982.2008.00209.x
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    References listed on IDEAS

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    1. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    2. Riccardo Scarpa & Kenneth G. Willis & Melinda Acutt, 2007. "Valuing externalities from water supply: Status quo, choice complexity and individual random effects in panel kernel logit analysis of choice experiments," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(4), pages 449-466.
    3. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. "Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
    4. Casey, James F. & Kahn, James R. & Rivas, Alexandre, 2006. "Willingness to pay for improved water service in Manaus, Amazonas, Brazil," Ecological Economics, Elsevier, vol. 58(2), pages 365-372, June.
    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.
    6. J.d. Snowball & K.g. Willis, 2006. "Building Cultural Capital: Transforming The South African National Arts Festival," South African Journal of Economics, Economic Society of South Africa, vol. 74(1), pages 20-33, March.
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    Cited by:

    1. Genius Murwirapachena & Johane Dikgang, 2022. "The effects of presentation formats in choice experiments," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(3), pages 421-445, July.
    2. Jia Wang & Jiaoju Ge & Zhifeng Gao, 2018. "Consumers’ Preferences and Derived Willingness-to-Pay for Water Supply Safety Improvement: The Analysis of Pricing and Incentive Strategies," Sustainability, MDPI, vol. 10(6), pages 1-16, May.
    3. Deborah Ellen Lee & Stephen Gerald Hosking & Mario Du Preez, 2015. "Managing Some Motorised Recreational Boating Challenges in South African Estuaries: A Case Study at the Kromme River Estuary," South African Journal of Economics, Economic Society of South Africa, vol. 83(2), pages 286-302, June.
    4. Mahmoud K. El-Jafari, 2013. "Palestinian Household Willingness and Ability to Pay for Public Utilities in The West Bank: The Case of Electricity and Water," Working Papers 784, Economic Research Forum, revised Oct 2013.
    5. Jeuland, M.A. & Bhojvaid, V. & Kar, A. & Lewis, J.J. & Patange, O. & Pattanayak, S.K. & Ramanathan, N. & Rehman, I.H. & Tan Soo, J.S. & Ramanathan, V., 2015. "Preferences for improved cook stoves: Evidence from rural villages in north India," Energy Economics, Elsevier, vol. 52(PB), pages 287-298.
    6. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.

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