Household’s willingness to pay for improved water supply service in The case of Harbu chulule town

Abstract

This paper tried to examine and analyze the households’ willingness to pay for improved water supply services in Town areas of Ethiopia, Harbu chulule Town as a case study. This study therefore, aims to estimate the amount that households would be willing to pay for improved water supply services and identify the potential factors affecting their Willingness to pay for improved water supply service in Harbu chulul Town Contingent valuation Method was used to examine the determinants of willingness to pay. A total 86 sample households were interviewed during the survey. The survey result showed that, if the water Town office provide improved water supply, more than 74.71% of households’ were willing and able to pay for the service at a price more than a cost recovery tariff rate. ,, result showed that sex of the household, income of households, educational level of household, reliability of existing water supply service and bid price were significantly affecting WTP for improved water services in the Thus if the proposed water improvement scheme is implemented, in addition to satisfying the water needs of the households, the Town utility management can collect more revenue from the sale of improved water. The CV survey results also show that the mean WTP of households for the proposed improved water service is between 31.26 cents and 51.51 cents per jerry can depending on the method used. Therefore, policy makers need to take in to consideration these socio-economic and demographic factors and some other attributes of water in designing the improved water supply system of the Town