Willingness to Pay for Improved Water Services in Rajshahi City, Bangladesh

Article type: Research Article

Authors: Sarker, Md Abdur Rashid | Alam, Khorshed

Affiliations: Department of Economics, University of Rajshahi, Bangladesh | Australian Centre for Sustainable Business & Development, University of Southern Queensland, Toowoomba, QLD 4350, Australia

Note: [] Corresponding Author. E-mail: [email protected]

Abstract: This study uses contingent valuation (CV) method to elicit residential consumers' willingness to pay (WTP) for improved water supply services in Rajshahi city, Bangladesh. It identifies the factors affecting households' WTP through a multiple regression analysis. Accordingly, a sample of 150 households with piped water connection was chosen to be interviewed with the use of a face-to-face questioning technique. The results from this study show that households are willing to pay more for improved services which is important for the policy makers in devising appropriate water tariff. Among various indicators, households' income, education and type of housing have emerged as three most important factors in affecting consumers' WTP.

Keywords: Contingent valuation, Rajshahi, water supply service, willingness to pay

Journal: Asian Journal of Water, Environment and Pollution, vol. 10, no. 2, pp. 41-49, 2013