Determinants of Willingness to Pay for Safe Drinking Water: A Case Study in Bangladesh
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.
Ahmed, J., Goldarb, B. and S. Misrac (2005). Value of arsenicfree drinking water to rural households in Bangladesh.Journal of Environmental Management, 74: 173-185.
Bangladesh Arsenic Mitigation Water Supply Project Website,www.bamwsp.org
Calkins, P., Larue, V. and B.V. Marc (2002). WTP for Drinking Water in the Sahara: The Case of Douentza in Mali. Cahiers d’Economie et Sociologie Rurales, 3.
Courant, P. and R. Porter (1981). Averting Expenditures and the Cost of Pollution. Journal of Ecological and
Environmental Management, 8.
Dhaka Community Hospital (DCH) (2002). Arsenic Pollution in Groundwater of Bangladesh. www.dch.net
Gnedenko, E., Gorbunova, Z. and G. Safonov (2000).Contingent Valuation of drinking water quality in Samara
city. EERC Working Paper Series, EERC Research Network, Russia, 98-263e.
Harrington, W. and P. Portney (1987). Valuing the Benefits of Health and Safety Regulation. Journal of Urban Economics,Implementation Plan for Arsenic Mitigation in Bangladesh,pp. 6-7.
Jalan, J., Somanathan, E. and S. Choudhuri (2003). Awareness and the Demand for Environmental Quality: Drinking Water in Urban India. Indian Statistical Institute, Discussion Paper 03-05.
Larson, B.A. and E.D. Gnedenko (1999). Avoiding Health Risks from Drinking Water: Theory and Moscow Survey Results. Environment and Development Economics, 4: 565- 581.
Smith, A.H., Lingasand, O.E. and M. Rahman (2000). Contamination of drinking water by arsenic in Bangladesh: A public health emergency. Bulletin World Health Org, 78: 1093-1103.
Whittington, D., Briscoe, J. and X. Mu (1998). Willingness to Pay for Water in Rural Areas: Methodological approaches and an application in Haiti. Field Report No. 213, Arlington, Va, Wash.
World Bank (2000). Entering the 21st Century: World Development Report, 1999/2000. Oxford University Press, New York.