Abstract
The chapter applied a willingness to pay ability (WPA) approach to estimate the economic value of drinking water (EVM) using primary data. The sample of 350 households are randomly taken from four wards of Kanpur Nagar, Uttar Pradesh (India). Simple OLS, probit, logit, and mixed-effect logit regression models are applied to examine the effect of social- economic variables on WPA of households to receive better water supply from suppliers. It found that the municipality is charging a very low price to provide water supply of 30 Kilolitre/household per month. However, implicit cost (IC) of water/household is found higher as compared to WPA. IC/household appeared high due to consumption of unsafe drinking water, and incidence of various waterborne health issues and diseases. Family size, occupation, and annual income showed a positive impact on WPA of households.
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