Household Willingness To Pay For Provision Of Improved Urban Water Supply Service In Chagni Town Amhara Region Ethiopia

Household Willingness to pay for provision Improved Urban Water Supply Service in ChagnirnTown, Amhara Region, EthiopiarnYamert BerihunrnAddis Ababa University, 2020rnGood quality, reliable and affordable supply of drinking water is a basic need for human life.rnHowever, many people in LDCs are lacking this safe and quality water. Since Ethiopia is one ofrnthese LDCs its urban area population does not have access to such attributes of water. Therefore,rnreliability and quality are crucial for household water supply. In this study the CVM was used tornanalyze the determinants of households’ WTP for improved water services by applying the singlernbounded dichotomous choice value elicitation format. The study used cross-sectional datarncollected from 300 randomly selected sampled households from Chagni town. The CV surveyrnresponses were analyzed through descriptive and econometric analysis using Probit and Tobit asrnempirical models.rnThe CV survey results revealed that 264 (87.96%) of the respondents were willing to pay arnpositive amount for improved water services. Therefore if the proposed water improvementrnscheme is implemented, in addition to satisfying the water needs of the households, the towns’rnutility management can collect more revenue from the sale of improved water. The CV surveyrnresults also show that the mean WTP of households for the proposed improved water service is 30rncents per jerry can depending on the method used.rnResults from the probit and Tobit model showed that Household distance, respondent age,rnrespondent family size, Initial bid per jerican and available improver water service havernsignificant effects on willingness to pay improved town water service, While the water bornrndisease and initial bid price for water services have significant and negative effect on thernprobability of WTP for improved water services.rnTherefore, policy makers need to take in to consideration these socio-economic and demographicrnfactors and some other attributes of water in designing the improved water supply system of therntowns.

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