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Household Demand for Water in Rural Kenya

Author

Listed:
  • Jake Wagner

    (Washington State University)

  • Joseph Cook

    (Washington State University)

  • Peter Kimuyu

    (Commission for Revenue Allocation)

Abstract

To expand and maintain water supply infrastructure in rural regions of developing countries, planners and policymakers need better information on the preferences of households who might use the sources. Using data from 387 households in rural Kenya, we model source choice and water demand using a discrete-continuous (linked) demand model. We find that households are sensitive to the price, proximity, taste, and availability in choosing among sources, but are not sensitive to other source qualities including color, health risk, and risk of conflict. Estimates of the value of time implied by our model suggest that households value time spent collecting water at one third of unskilled wages. We use the linked demand framework to estimate own-price elasticities in the rural setting. These estimates range between − 0.13 and − 1.33, with a mean of − 0.56, and are consistent with other elasticity estimates from small and large cities.

Suggested Citation

  • Jake Wagner & Joseph Cook & Peter Kimuyu, 2019. "Household Demand for Water in Rural Kenya," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1563-1584, December.
    • Handle: RePEc:kap:enreec:v:74:y:2019:i:4:d:10.1007_s10640-019-00380-5
    DOI: 10.1007/s10640-019-00380-5
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