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Title: Determinants of Household Demand for Improved Water Services: A Case Study of the Contingent Valuation Survey in Addis Ababa, Ethiopia
Authors: Assefa, Chaka
Advisors: Dr. Alernayehu Seyoum
Keywords: Improved Water Services
Determinants of Household Demand
Copyright: May-1998
Date Added: 21-Nov-2012
Publisher: AAU
Abstract: The demand for improved water services is determined by a number of socio-economic and demographic factors and water attributes. Information on the demand side are relevant for policy purposes such as tariff structure and the choices of appropriate water supply schemes. various methods of determining households' preference and willingness to pay for improved water services are used in developing countries. \ In this study both the contingent valuation survey (direct method) and the indirect (revealed preference) methods are used to estimate households' willingness to pay for improvedwater services in the city of Addis Ababa, Ethiopia. The research was based on primary cross-sectional data from sampled households of different locations in the city. In the indirect method the binomial probit model was used to determine factors influencing households' decisions to connect to the piped water scheme. The CV approaches were utilised to investigate the determinants of households' willingness- to-pay for private connection and public taps. The mean WTP bids for private connections and public taps are well above the current subsidised tariff, 8.66 and 4.7 cents per baldi, respectively. The results of the study revealed that the uses of the two approaches can provide policy relevant information on the level and type of improvedwater services required by households and how they should be paid for. Household income, ownership of house, age and education level are significant determinants of households' decisions to connect to the piped schemes. The significant variables influencing the WTP responses include income, education level and sex of the household head, household size, time for fetching water and household's attitude toward the responsibility of water provision.
URI: http://hdl.handle.net/123456789/3850
Appears in:Thesis - Economics

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