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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.

Suggested Citation

  • 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. 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.
    3. 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.
    4. Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2020. "The South Korean public’s evaluation of the mix of power generation sources: A choice experiment study," Energy & Environment, , vol. 31(7), pages 1181-1190, November.
    5. 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).
    6. Kim, Hyo-Jin & Kim, Ju-Hee & Yoo, Seung-Hoon, 2019. "Social acceptance of offshore wind energy development in South Korea: Results from a choice experiment survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.

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