Awareness of coping costs and willingness to pay for urban drinking water service: Evidence from Lahore, Pakistan

Syed M. Hasan, Agha Ali Akram and Marc Jeuland

Utilities Policy, 2021, vol. 71, issue C

Abstract: The global population is rapidly urbanizing, increasing pressure on scarce water resources. Lahore, Pakistan, is a case in point, with limited options for increasing water supply to meet booming demand. We ask whether households are willing to pay more cost-reflective tariffs following a simple, randomized information treatment involving calculation of the costs of coping with poor service quality. Treated households are 20 percentage points more likely to acquiesce to increased tariffs for improved service, and median monthly WTP increases 17–18%. A simple verbal procedure can increase acceptance of price increases, offering managers a valuable tool for water demand management.

Keywords: Information treatment; Contingent valuation; Coping costs; Water pricing; Field experiment; Piped water supply; Pakistan (search for similar items in EconPapers)
JEL-codes: C93 L95 Q25 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:71:y:2021:i:c:s0957178721000801

DOI: 10.1016/j.jup.2021.101246

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