Estimation of willingness to pay for improved water supply service: Case of Algerian households

Sofiane Boukhari, Mourad Kertous (), Abdelhak Nassiri and Samir B. Maliki ()
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Sofiane Boukhari: Faculty of Technology and Sciences, University of Souk Ahras, Souk Ahras, Algeria
Mourad Kertous: AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - IRD - Institut de Recherche pour le Développement - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique
Abdelhak Nassiri: AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - IRD - Institut de Recherche pour le Développement - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique
Samir B. Maliki: Université Aboubekr Belkaid de Tlemcen = University of Belkaïd Abou Bekr [Tlemcen]

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Abstract: ABSTRACT The purpose of this article is to evaluate the water company in Algeria (ADE) subscribers' Willingness To Pay (WTP) for a better service offer. This study assessed the WTP for improved drinking water in the department of Souk-Ahras (Algeria), using contingent valuation survey data of 5,342 households, with a response rate of 10.86% (greater than 10% of each municipality's total number of subscribers). Then, Probit and Tobit models were applied to analyze the determinants of WTP. The results show that the majority of respondents (62.84%) testified that they were not satisfied with the quality of the service provided in terms of quantity and quality of the water distributed. This research revealed that the WTP for an improved water supply service was approximately 16.18 Algerian dinar (DZD)/m3 (approximately 0.11 US$/m3) instead of the current tariff (6.3 DZD/m3–0.04 US$ /m3). With this new water tariff, the average water charge for a household is around 1.37% of the average monthly income.

Date: 2024-06-01
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Published in Water Science and Technology: Water Supply, 2024, 24 (6), pp.2024-2038. ⟨10.2166/ws.2024.130⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05378241

DOI: 10.2166/ws.2024.130

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