Examination of Water Pricing Policy Adopted by Borno State Water Corporation in Maiduguri and Household’s Willingness to Pay for Water (Published)
This study examined two research questions, (1) the water pricing policy adopted by Borno State water Corporation in Maiduguri and (2) the household’s willingness to pay for water. Two stage sampling procedures were employed in selecting respondents for collection of data through questionnaire, which was administered to respondents out of which 474 questionnaires were used for the study due to their completeness and consistency (181 for staff of Borno state water corporation and while 293 for Households willingness to pay for water). Descriptive statistics and Probit Regression were used to analyze the data. The result of the study revealed that domestic water flat rate was adopted as water pricing policy by Borno state water corporation in Maiduguri. This involves an equal charging water rate to households, and at a very low rate. The second research question result of the study revealed that some socio-economic characteristics of respondents captured in the probit regression influenced household willingness to pay for water which are age, education qualification, household size, income level, household awareness of water problems, time of water availability, perception of respondents on the amount paid for water supply and perception of respondent on the need to improve water supply. The value of R2 indicates that 89% of variation in the willingness to pay for water is explained by the explanatory variables. The researchers recommend that water consumption should be metered so that household heads will pay for what they consumed instead of adopting water flat rate.
Keywords: Socio-Economic Factors, Water board staff, Willingness to pay, household heads, water pricing policy, water tariff
TOWARDS A SUSTAINABLE ALLOCATION OF POTABLE WATER IN GHANA: EVIDENCE FROM KUMASI (Published)
The provision of potable water for human sustenance both now and in the future is one of the most critical issues in the world today. This paper sought to assess the sustainability of potable water distribution in Ghana through the Contingent Valuation Method in Kumasi, Ghana’s second largest urban centre. Willingness-to-pay values were elicited by means of a bidding game technique through administered questionnaire to communities in Kumasi, where potable water supply was either non-existent or very irregular. The analysis shows that Ghana Water Company Limited (GWCL) could increase current tariffs by about 300% without hurting consumers, since, that would rather increase welfare considerably and facilitate sustainable allocation of potable water. A sizeable consumers’ surplus exists, which is an indication of households being susceptible to extortion by water vendors. This requires urgent government intervention to save some poor residents of Kumasi from undue exploitation as well as the return to the consumption of unwholesome water that would increase pressure on medical and Health Insurance resources.
Keywords: Consumers’ Surplus, Ghana, Potable Water, Welfare, Willingness to pay