Estimating household willingness to pay for water services in a rural economy: The case of Kanye in southern Botswana

Abstract

This study uses the contingent valuation approach to examine the relationship between selected socio-economic characteristics of households and their willingness to pay for private water connection. An iterative bidding method was used to obtain survey data from 135 households randomly selected from Kanye in southern Botswana and the ordinary least-square regression technique was used to estimate the effects of selected exogenous variables on willingness to pay. The results show that household income, level of education and employment status of the head of the household and level of consumers' awareness are the principal factors influencing willingness. This suggests that any government policy that increases these factors will increase households' willingness. In addition, because consumers' income is associated with their willingness to pay, it is suggested that policies on connection and user fees recognise income inequalities when determining the amount that households should pay.

Acknowledgments

The contribution of the research assistants, particularly O Otsetswe, in collecting the data used in this study is gratefully acknowledged.

Additional information

Notes on contributors

James N Mbata

formerly of Department of Economics, University of Botswana.