Assessing Households Willingness to Pay for Improved Water Supply Services in Holeta Town Using Contingent Valuation Method

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Addis Ababa University


This paper tried to examine and analyze the households' willingness to pay for improved water supply services in urban areas of Ethiopia, Holeta town as a case study. Contingent valuation method was used to examine the determinants of willingness to pay. A total of 141 sample households were interviewed during the survey, together with focus group discussion and key informant interview. The survey result showed that, if the towns water supp ly office provide improved water supply, more than 80% of households' were willing and able to pay for the service at a price more than a cost recovery tariff rate. Correlation result showed that income of households' and household size were significantly affecting households' willingness to pay.



Water Supply Services