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2014•Journal of Water Sanitation and Hygiene for DevelopmentRequires access

Willingness to pay for improved water supplies in rural Ugandan villages

Steven G. Wright, Daya Muralidharan, Alex Mayer, William S. Breffle

Open publisher page 9 citations

Abstract

The contingent valuation method was used to estimate willingness to pay (WTP) for the operation and maintenance of an improved water source in the villages of Kigisu and Rubona in rural Uganda. The survey was conducted in August 2011 and administered to 122 households out of 400 in the community, gathering demographic information, health and water behaviors, and using an iterative bidding process to estimate WTP per 20 L for a public tap. The data were analyzed using an ordered probit model, which predicts monetary intervals for households' WTP. The model predicts a mean WTP of 356 Ugandan shillings (USD 0.183) per 20 L from a public tap. It was determined that the number of children in the home and the distance from the existing source are significant in influencing household's WTP, while income, age, and gender are not.

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What this paper is about

The contingent valuation method was used to estimate willingness to pay (WTP) for the operation and maintenance of an improved water source in the villages of Kigisu and Rubona in rural Uganda. The survey was conducted in August 2011 and administered to 122 households out of 400 in the community, gathering demographic information, health and water behaviors, and using an iterative bidding process to estimate WTP per 20 L for a public tap. The data were analyzed using an ordered probit model, which predicts monetary intervals for households' WTP. The model predicts a mean WTP of 356 Ugandan shillings (USD 0.183) per 20 L from a public tap. It was determined that the number of children in the home and the distance from the existing source are significant in influencing household's WTP, while income, age, and gender are not.

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Available abstract

The contingent valuation method was used to estimate willingness to pay (WTP) for the operation and maintenance of an improved water source in the villages of Kigisu and Rubona in rural Uganda. The survey was conducted in August 2011 and administered to 122 households out of 400 in the community, gathering demographic information, health and water behaviors, and using an iterative bidding process to estimate WTP per 20 L for a public tap. The data were analyzed using an ordered probit model, which predicts monetary intervals for households' WTP. The model predicts a mean WTP of 356 Ugandan shillings (USD 0.183) per 20 L from a public tap. It was determined that the number of children in the home and the distance from the existing source are significant in influencing household's WTP, while income, age, and gender are not.

Key concepts: Contingent valuation, Willingness to pay, Bidding, Probit model, Probit, Ordered probit, Socioeconomics, Tap water

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