A Cost Benefit Analysis Approach to Household Bottled Water Consumption in Nairobi County

Abstract

The benefits accrued from bottled water consumption have been growing globally, playing an important role in provision of clean drinking water to populations experiencing challenges in clean drinking water access. While bottled water is promoted as a solution to access to clean drinking water, it presents a socioeconomic challenge given its economic costs, safety concerns and socioeconomic inequalities in clean water access. The study adopted a descriptive research design to examine the socioeconomic costs and benefits of bottled water consumption, extents of bottled water consumption and aspects that explain continued bottled water consumption. The qualitative methods focused on extents and health cost benefits of bottled drinking water consumption. Quantitative methods focused on the monetary aspects of bottled water. The contingent valuation method was utilized to determine households’ willingness to pay for better drinking water services and an economic Cost Benefit Analysis of bottled water was done. Data was collected from 263 households using questionnaires and from 17 supermarket outlets using observation checklists. The study found that 38% of households consume bottled water regularly. 73% of households preferred to consume bottled water for other sources of water. Households were willing to pay 1.8% to 7.5% of their income for better drinking water quality services. Bottled water consumption was not viable, with a Benefit Cost Ratio of 0.36. Regression analysis showed that availability, water quality, taste, safety, and convenience of bottled water were aspects that explain bottled water consumption in Umoja with values of −0.446, −0.083, 0.350, −0.194, and −0.046 respectively. The study therefore proposes a multifaceted approach towards sustainable bottled water consumption extending beyond infrastructural improvements including interventions for behavioral changes, quality control enforcement, strengthening standards of bottled water supply and encouraging use of sustainable packaging.