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Determinants of rural household willingness to pay for safe water in Kwara State, Nigeria

Keywords: Willingness to pay , water , rural , quality , quantity

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Abstract:

The paper examines the use of the contingent valuation method to study the determinants ofrural households’ willingness to pay (WTP) for safe water in Kwara State. A sample of 120 householdswas surveyed and a Tobit model was applied to explain household preferences for quality and quantity ofdomestic water supply and derive estimates of WTP for such a service. The results confirm thathousehold age had a negative and statistically significant impact on WTP for both quantity and quality.Income, water consumption and water source are positively associated with WTP for better quantity butwith a negative sign. This implies that the more the income, water consumes, water source, the less thathousehold would be WTP for better water quantity. Willingness to pay for improved water quality ispositively related to waiting time and education. Rural households showed a much higher WTP for betterwater quantity than for improved water quality. There is therefore scope to improve water service levelsin the study area.

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