Determinants Of Individual Willingness To
Pay For Quality Water Supply: The Case Of
Wonji Shoa Sugar Estate, Ethiopia
Author(s)
S. Wondimu & W. Bekele
Abstract
This paper analyses the determinants of households’ willingness to pay (WTP)
for quality water supply, using the contingent valuation method (CVM). The
study was conducted with randomly selected households in the factory villages
of Wonji Shoa Sugar Estate, Ethiopia. The value elicitation method used is a
close ended format questionnaire with additional close ended format, and open
ended follow up questions which is closer to the market scenario respondents are
familiar with. The empirical model used in this study is the Tobit model. The
result of the study revealed that income of the household, education level of the
respondent, reliability on existing water supply, respondent perception about
quality of the existing water supply, household family size and age of the
respondent are significant variables that explain WTP. The mean WTP for
quality water supply is found to be $0.025 per 20 litres which is well above the
current tariff rate of the Oromiya regional government in Ethiopia.
Keywords: willingness to pay, contingent valuation study, Wonji Shoa Sugar
Estate.
Keywords
willingness to pay, contingent valuation study, Wonji Shoa Sugar
Estate
Related Book
Other papers in this volume
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