Assessing Households Willingness To Pay For Improved Water Supply Services In Holeta Town Using Contingent Valuation Method

This paper tried to examine and analyze the households' willingness to pay for improved waterrnsupply services in urban areas of Ethiopia, Holeta town as a case study. Contingent valuationrnmethod was used to examine the determinants of willingness to pay. A total of 141 samplernhouseholds were interviewed during the survey, together with focus group discussion and keyrninformant interview. The survey result showed that, if the towns water supp ly office providernimproved water supply, more than 80% of households' were willing and able to pay for thernservice at a price more than a cost recovery tariff rate. Correlation result showed that income ofrnhouseholds' and household size were significantly affecting households' willingness to pay.

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