Estimation of willingness to pay for improvement in dirnking water quality: a study of wasa, lahore

Abstract

This study examines the existing water quality of Lahore and measures domestic household's willingness to pay for improvement in water quality services. To this end, a Tobit model is estimated by conducting a contingent valuation survey about household perceptions in six towns of Lahore. The results show that the factors affecting household's willingness to pay are coping costs that a household pay for ensuring quality of water.The study also finds the education level of head of family is an important factor in determining the willingness to pay for improved water services. It is recommended that by ensuring the supply and quality to the household additional revenue of 4.22 million rupees could be earned by the authority.Willingness to Pay, Tobit, Drinking Water Quality