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Estimation of the public benefits of urban water supply improvements in Ethiopia: a choice experiment

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  • Solomon Tarfasa
  • Roy Brouwer

Abstract

Improving existing drinking water supply services in developing countries depends crucially on available financial resources. Cost recovery rates of these services are typically low, while demand for more reliable services is high and rapidly growing. Most stated preference-based demand studies in the developing world apply the contingent valuation method and focus on rural areas. This study examines household Willingness to Pay (WTP) for improved water supply services in a choice experiment in an urban area in Ethiopia, a country with the lowest water supply coverage in Sub-Saharan Africa. The design of the choice experiment allows estimation of the value of both drinking water supply reliability and safety. The estimated economic values can be used in policy appraisals of improved supply investment decisions. Despite significant income constraints, households are willing to pay up to 80% extra for improved levels of water supply over and above their current water bill. Women and households living in the poorest part of the city with the lowest service levels value the improvement of water quality most. As expected, also averting behaviour and expenditures play an important role.

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  • Solomon Tarfasa & Roy Brouwer, 2013. "Estimation of the public benefits of urban water supply improvements in Ethiopia: a choice experiment," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1099-1108, March.
    • Handle: RePEc:taf:applec:45:y:2013:i:9:p:1099-1108
    DOI: 10.1080/00036846.2011.613793
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    2. 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.
    3. Alemu Mekonnen & Zenebe Gebreegziabher & Abebe D. Beyene & Fitsum Hagos, 2019. "Valuation of Access to Irrigation Water in Rural Ethiopia: Application of Choice Experiment and Contingent Valuation Methods," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-26, September.
    4. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    5. Joseph Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Public Value of Marine Biodiesel Technology Development in South Korea," Sustainability, MDPI, vol. 10(11), pages 1-12, November.
    6. Massarutto, Antonio & Roder, G. & Troiano, S., 2022. "Better safe than sorry? Stated preferences and the precautionary principle for securing drinking water quality in an Italian district," Utilities Policy, Elsevier, vol. 76(C).
    7. Hyo-Jin Kim & Jeong-In Chang & Seung-Hoon Yoo, 2019. "Non-Market Valuation of Water Pollution Remediation and Disaster Risk Mitigation Functions: The Case of Nakdong River Estuary in South Korea," Sustainability, MDPI, vol. 11(3), pages 1-9, February.
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    10. 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.
    11. Hee-Jong Yang & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Environmental Costs of Photovoltaic Power Plants in South Korea: A Choice Experiment Study," Sustainability, MDPI, vol. 9(10), pages 1-13, September.
    12. Ju-Hee Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Economic Value of Building a Firefighter Training Academy for Urban Disaster Management in Seoul, South Korea," Sustainability, MDPI, vol. 10(12), pages 1-11, December.
    13. Nur Syuhada, C.I. & Mahirah, K. & Roseliza, M.A., 2020. "Dealing with attributes in a discrete choice experiment on valuation of water services in East Peninsular Malaysia," Utilities Policy, Elsevier, vol. 64(C).
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