Households’ Demand for Improved Water Supply Service in Rural Areas of Ankasha Woreda, Amhara Regional State in Ethiopia

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Addis Ababa University


The major objective of this study is to assess the demand for improved water supply services in the context of rural areas of Ankasha woreda by using CVM with a single bounded elicitation format followed by open ended questions. Both Probit and Tobit models were used to analyze the determinants of households WTP for improvement of rural water supply services, and a total of 200 randomly selected rural household heads were interviewed. A mean WTP of birr is found to be 1.52 per jerican. Households monthly income, time taken to collect water from the existing source for single trip, educational level and sex of the household head have positive and significant effects on willingness to pay for improved rural water supply services. On the other hand, the initial bid price and quality of existing water source have negative and significant effects on the probability of willingness to pay for improved water provision in the probit model. In the Tobit model the variables households monthly income, time taken to collect water for single trip, educational level, marital status and age of the household head determine MWTP of respondents positively, while availability and quality of the existing water sources negatively affect MWTP. As the mean willingness to pay of the sampled households is very much higher than the amount of money households paying for existing water sources, both the rural households and service provider will be the gainers from the improved water supply service implementation. The service providers should take into consideration the quality and distance problems in designing the water system of the rural areas of Ankasha woreda.



Improved Water Supply Service in Rural Areas