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Household Demand for Improved Water Supply Service In Ethiopia: The Case Of Sodo Town

Abstract: 

Water is crucial for human life and one of the resources for economic development. However, the provision of improved water supply service is inadequate both in urban and rural areas of Ethiopia. Hence, an efficient water supply service is needed to all the households in the country. This particular research study is conducted to gather information on the existing situations and problems related to the water supply services in Sodo town and to suggest some measures for policy improvement. A contingent valuation method was applied by using bidding game elicitation format with a single bound close‐ended question followed by open‐ended follow up question. Data was collected from 160 household heads by using face‐to‐face interviews. The collected data was analyzed by using both descriptive and econometric data analysis techniques. Results of descriptive analysis reveal that of the total sample households, 47.5% have private connection. However, only 18.49% households were satisfied with the status quo. About 99.37% sampled households preferred to have the improved services and almost 94% of households expressed their willingness to pay for the proposed scheme of improved service in the town. The empirical result of probit model suggested that whether or not the household is willing to pay for improved water supply service are affected by gender of the household head, house ownership, and years of stay in the area, sources of water, quantity of water used per day, time loss to fetch water and initial bid price. In the Tobit model, gender of the household head, level of education, level of satisfaction and initial bid price are found to determine the amount of money individuals were willingness to pay. The study concluded that demand side information is important to bring efficient water supply service.

Corporate Author: 
Ethiopian Economic Association (EEA)
Publisher: 
Getnet Alemu, Worku Gebeyehu & Demirew Getachew (Editors) & Ethiopian Economic Association (EEA)
ISBN/ISSN: 
978-99944-54-37-2
Primary Descriptors: 

Water

Secondary Descriptor: 

Social Sector - Sodo

Geographic Descriptors: 
Ethiopia, Sodo
Cataloge Date: 
03/13/2015
Broad Subject heading: 
water supply - Ethiopia
Call Number: 
330.963 PRO 2014
Serial Key Title: 
Proceedings of the Eleventh International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
I
Publication date: 
2014-06-02 00:00:00
Forum or Discussion date: 
2013-07-17 00:00:00
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annually