Determinants of Household's Willingness to Pay and Demand for Improved Water Services: A Contingent Valuation Study in Jijiga Town
| dc.contributor.advisor | Hassan, Syed (Dr) | |
| dc.contributor.author | Mohamoud Egeh, Mohammed | |
| dc.date.accessioned | 2021-03-31T14:41:26Z | |
| dc.date.accessioned | 2023-11-04T10:28:51Z | |
| dc.date.available | 2021-03-31T14:41:26Z | |
| dc.date.available | 2023-11-04T10:28:51Z | |
| dc.date.issued | 2009-06 | |
| dc.description.abstract | As many cities in developing countries, jijiga town faces problems in obtaining water for domestic purposes. 81.3% of the households in jijiga town do not have private pipe connection in their houses. Although jijiga water supply office is incurring a loss of 0.521 birr per one meter cubic of water produced, water supply is far below the existing water demand in the toWIl. Based on cross-sectional data collected from 251 households in jijiga town and using contingent valuation method, this study investigates and assesses the determinants of households' willingness to pay and demand for improved water services in jijiga city which will provide an indication of the value that consumers place on improved water services. The study will also provide guidance by enabling policy makers to design an appropriate water pricing structure. Two empirical models adopted by th is study are Probit and OL5 models. The Probit model is used to analyze responses from single bounded close ended questions. The OLS model is used to analyze responses from the open ended questions by identifying factors that affect maximum WTP of the households for improved water service. The result of the study shows that households spend 4.4% of their monthly income on water, where households consume, on average only 132 liters per day. Households do not satisfy the current water supply situation due to low quality, less quantity and unreliability of the sources. Among six main social services presented, majority of respondents give the first priority to water services. The mean WTP for improved water services is found to 0.36 Birr per jerican (a 20 liter backed) which is about 6.5 times more than the existing authority's current tariff rate. Both empirical models show that explanatolY variables, in come of the households, level of satisfaction of the household, ownership of the house, reliability of water source, primGly water source alld Respondents' perception about the quality of the existing water supply sig nificantly affect the households' WTP for improved water service. Therefore, as a policy implication, the study suggests consideration to be given such variables in designing and implementing the policies of improved water supply service project. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/25864 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Improved Water Services | en_US |
| dc.subject | Household's Willingness | en_US |
| dc.title | Determinants of Household's Willingness to Pay and Demand for Improved Water Services: A Contingent Valuation Study in Jijiga Town | en_US |
| dc.type | Thesis | en_US |