Determinants of Willingness to Pay for Safe Drinking Water: A Case Study in Bangladesh

Article type: Research Article

Authors: Akter, Sonia

Affiliations: Crawford School of Economics and Government, The Australian National University Canberra, ACT 2601, Australia. E-mail: sonia.akter@anu.edu.au

Abstract: The aims of the current study are to estimate the economic value of arsenic safe drinking water in rural Bangladesh and to identify the determinants of household willingness to pay (WTP) for safe drinking water. In this study, households living in different highly arsenic concentrated areas in Bangladesh were asked for their WTP for the collection of arsenic safe drinking water using an open ended WTP question. The study estimates an average WTP of US$9 per year for safe drinking water which is less than one percent of the average annual household income. Stated WTP amounts have been found varying significantly with respondents' levels of mass media exposure, standards of living (measured through the types of latrine used by households), respondents' age, number of children in each household, the levels of education of the adult family members and distance of arsenic-free drinking water source.

Keywords: Contingent valuation, arsenic, drinking water, Bangladesh, willingness to pay

Journal: Asian Journal of Water, Environment and Pollution, vol. 5, no. 3, pp. 85-91, 2008