Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment

The service of providing good quality of drinking water can greatly improve the lives of the community and maintain a normal health standard. For a large number of population in the world, specifically in the developing countries, the availability of safe water for daily sustenance is none. Damaturu...

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Main Authors: Alhaji Dauda, Suleiman, Yacob, Mohd Rusli, Radam, Alias
Format: Article
Language:English
Published: Springer 2015
Online Access:http://psasir.upm.edu.my/id/eprint/51648/1/Household%27s%20willingness%20to%20pay%20for%20heterogeneous%20attributes%20of%20drinking%20water%20quality%20and%20services%20improvement%20an%20application%20of%20choice%20experiment.pdf
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author Alhaji Dauda, Suleiman
Yacob, Mohd Rusli
Radam, Alias
author_facet Alhaji Dauda, Suleiman
Yacob, Mohd Rusli
Radam, Alias
author_sort Alhaji Dauda, Suleiman
collection UPM
description The service of providing good quality of drinking water can greatly improve the lives of the community and maintain a normal health standard. For a large number of population in the world, specifically in the developing countries, the availability of safe water for daily sustenance is none. Damaturu is the capital of Yobe State, Nigeria. It hosts a population of more than two hundred thousand, yet only 45 % of the households are connected to the network of Yobe State Water Corporation’s pipe borne water services; this has led people to source for water from any available source and thus, exposed them to the danger of contracting waterborne diseases. In order to address the problem, Yobe State Government has embarked on the construction of a water treatment plant with a capacity and facility to improve the water quality and connect the town with water services network. The objectives of this study are to assess the households’ demand preferences of the heterogeneous water attributes in Damaturu, and to estimate their marginal willingness to pay, using mixed logit model in comparison with conditional logit model. A survey of 300 households randomly sampled indicated that higher education greatly influenced the households’ WTP decisions. The most significant variable from both of the models is TWQ, which is MRS that rates the water quality from the level of satisfactory to very good. 219 % in simple model is CLM, while 126 % is for the interaction model. As for MLM, 685 % is for the simple model and 572 % is for the interaction model. Estimate of MLM has more explanatory powers than CLM. Essentially, this finding can help the government in designing cost-effective management and efficient tariff structure.
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spelling upm.eprints-516482017-04-05T05:32:05Z http://psasir.upm.edu.my/id/eprint/51648/ Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment Alhaji Dauda, Suleiman Yacob, Mohd Rusli Radam, Alias The service of providing good quality of drinking water can greatly improve the lives of the community and maintain a normal health standard. For a large number of population in the world, specifically in the developing countries, the availability of safe water for daily sustenance is none. Damaturu is the capital of Yobe State, Nigeria. It hosts a population of more than two hundred thousand, yet only 45 % of the households are connected to the network of Yobe State Water Corporation’s pipe borne water services; this has led people to source for water from any available source and thus, exposed them to the danger of contracting waterborne diseases. In order to address the problem, Yobe State Government has embarked on the construction of a water treatment plant with a capacity and facility to improve the water quality and connect the town with water services network. The objectives of this study are to assess the households’ demand preferences of the heterogeneous water attributes in Damaturu, and to estimate their marginal willingness to pay, using mixed logit model in comparison with conditional logit model. A survey of 300 households randomly sampled indicated that higher education greatly influenced the households’ WTP decisions. The most significant variable from both of the models is TWQ, which is MRS that rates the water quality from the level of satisfactory to very good. 219 % in simple model is CLM, while 126 % is for the interaction model. As for MLM, 685 % is for the simple model and 572 % is for the interaction model. Estimate of MLM has more explanatory powers than CLM. Essentially, this finding can help the government in designing cost-effective management and efficient tariff structure. Springer 2015 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/51648/1/Household%27s%20willingness%20to%20pay%20for%20heterogeneous%20attributes%20of%20drinking%20water%20quality%20and%20services%20improvement%20an%20application%20of%20choice%20experiment.pdf Alhaji Dauda, Suleiman and Yacob, Mohd Rusli and Radam, Alias (2015) Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment. Applied Water Science, 5 (3). pp. 253-259. ISSN 2190-5487; ESSN: 2190-5495 http://rd.springer.com/article/10.1007/s13201-014-0186-6 10.1007/s13201-014-0186-6
spellingShingle Alhaji Dauda, Suleiman
Yacob, Mohd Rusli
Radam, Alias
Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment
title Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment
title_full Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment
title_fullStr Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment
title_full_unstemmed Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment
title_short Household's willingness to pay for heterogeneous attributes of drinking water quality and services improvement: an application of choice experiment
title_sort household s willingness to pay for heterogeneous attributes of drinking water quality and services improvement an application of choice experiment
url http://psasir.upm.edu.my/id/eprint/51648/1/Household%27s%20willingness%20to%20pay%20for%20heterogeneous%20attributes%20of%20drinking%20water%20quality%20and%20services%20improvement%20an%20application%20of%20choice%20experiment.pdf
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AT radamalias householdswillingnesstopayforheterogeneousattributesofdrinkingwaterqualityandservicesimprovementanapplicationofchoiceexperiment