Willingness-to-Pay for Potable Water in the Accra-Tema Metropolitan Area of Ghana
- 1 University of Ghana, Department of Economics, Accra, Ghana
- 2 University of Ghana, Department of Economics, Accra, Ghana
- 3 University of Ghana, Department of Economics, Accra, Ghana
- 4 Mendel University, Faculty of Regional and Territorial Studies, Brno, Czech Republics
Abstract
A major problem confronting the Accra-Tema Metropolitan area of Ghana is the provision of potable water supply. One reason for this occurrence is the inability of Ghana Water Company Limited to meet the growing demand. This can partly be attributable to the ineffective pricing by the PURC which is below cost recovery levels. In this study we investigate household’s willingness-to-pay (WTP) for potable water supply together with the factors that determine WTP by using the Contingent Valuation Method (CVM). The results indicate that households in the Accra-Tema metropolis are willing to pay on the average GH￠0.10 for a bucket (17.5 litres) of water which is about 7 times more than what they are paying currently. Analysis of the factors that influence households WTP indicates that income, time spent to fetch water from existing sources, level of education, sanitation facility, perceived quality of current water supply, sex of the respondent and marital status are the main factors influencing households WTP for potable water supply services in the metropolis. We recommend that government improve water supply and increase tariffs since people are prepared to pay more for potable water supply as well as reduce inefficiencies that exist in the sector.
- World Health Organisation (2006) Country Health System Fact Sheet 2006, Ghana. http://www.afro.who.int/index.php?option=com_docman&task=doc_download&gid=37
- Abraham, E.T., van Rooijen, D., Cofie, O. and Raschid-Sally, L. (2007) Planning Urban Water-Dependent Livelihood Opportunities for the Poor in Accra, Ghana. SWITCH Scientific Meeting, International Water Management Institute, Accra.
- WaterAid (2005) National Water Sector Assessment, Ghana. www.wateraid.org.
- Labite H., van der Steen, P. and Lens P. (2008) Analysis of Health Benefits versus Costs of Interventions in the Urban Water System in Accra, Using Quantitative Microbial Risks Assessment. WaterMill Working Paper Series, Vol. 14, 8.
- Brookshire, D.S. and Whittington, D. (1993) Water-Resources Issues in the Developing-Countries. Water Resources Research, 29, 1883-1888. http://dx.doi.org/10.1029/92WR02988
- Pearce, D.W., Adger, W.N., Brown, K., Cervigni, R. and Moran, D. (1993) Mexico Forestry and Conservation Sector Review: Sub study of Economic Valuation of Forests. Report by SCERGE, University of East Anglia and University College London, for the World Bank, Latin America and the Caribbean Country Department LA2, Washington DC.
- World Bank Water Demand Research Team (1993) The Demand for Water in Rural Areas: Determinants and Policy Implications. The World Bank Research Observer, 8, 47-70. http://dx.doi.org/10.1093/wbro/8.1.47
- Boadu, F.O. (1992) Contingent Valuation for Household Water in Rural Ghana. Journal of American Economics, 43, 548-465. http://dx.doi.org/10.1111/j.1477-9552.1992.tb00239.x
- Jordan, J.L. and Elnagheeb, A.H. (1993) WTP for Improvement in Drinking Water Quality. Water Resources Research, 29, 237-245. http://dx.doi.org/10.1029/92WR02420
- Aguilar, M. and Sterner, T. (1995) WTP for Potable Communal Water Services. EEU Working Papers, Gothenburg University, Gothenburg.
- Bah, I. (1997) Estimating Household’s Valuation for Potable Water Supply Service in Urban Areas: The Case of Freetown, Sierra Leone. Unpublished Master’s Dissertation, University of Botswana, Gaborone.
- Adjei, P.O. (1999) WTP for Potable Water Services: Contingent Valuation Method for Greater Accra Metropolitan Area. An Unpublished Master’s Thesis, University of Ghana, Accra.
- Calkins, P., Larue, B. and Vézina, M. (2002) WTP for Drinking Water in the Sahara: The Case of Douentza in Mali. Cahiers d’économie et sociologie rurales, No. 64, 38-56.