Estimating demand for reliable piped-water services in urban Ghana: An application of competing valuation approaches

Anthony Amoah (aamoah@central.edu.gh) and Peter Moffatt

No 2017-01, University of East Anglia School of Economics Working Paper Series from School of Economics, University of East Anglia, Norwich, UK.

Abstract: This paper applies three valuation methods to estimate demand for reliable piped-water services in Ghana. Our goal is to estimate the economic value of reliable piped-water supply, and use competing methods to provide validity checks for our estimates. We survey 1,648 urban households and find that the average amount that households are willing to pay per month is GHS 44.73 or US$14.27 (Hedonic Price Method), GHS 22.72 or US$7.25 (Travel Cost Method) and GHS 47.80 or US$15.25 (Contingent Valuation Method) respectively. These amounts are equivalent to 3%-8% of households' income. This study provides evidence of the economic viability of private sector involvement in the water sector in Ghana. Our estimates seek to inform both managers and policy makers in their decision-making on reliable piped-water supply.

Keywords: piped-water; willingness-to-pay; hedonic price; contingent valuation; travel cost (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-agr
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