Households' Water Use Demand and Willingness to Pay for Improved Water Services: A Case Study of Semi-Urban Areas in the Lubombo and Lowveld Regions of Swaziland

Abstract

This study was designed to assess household water demand and willingness to pay (WTP) for improved water services in the Lowveld and Lubombo regions of Swaziland. Using both purposive and cluster sampling methods, survey data were collected from 314 households in the month of April 2015, mainly in three constituencies, namely; Siphofaneni, Matsanjeni and Somnongtongo. The study used the Contingent Valuation Method (CVM) to estimate WTP using a double bounded dichotomous choice elicitation format. In assessing the determinants of WTP and water consumption, the study employed both the probit model and double-log regression model, respectively. Results from the study showed that about 67% of households in the study areas were willing to pay the initial bid offered for an improvement in their water services. Generally, about 93% of the sampled households were willing to pay something for the improvement in water services. The study further showed that the estimated mean WTP for a 20 litre of water was E0.471. On household water demand, results showed that the mean daily per capita water consumption was 13.12 litres. Results from the probit model showed that household income, education, gender, distance and owning a backyard garden positively and significantly affect WTP. Furthermore, age, water quality and the initial bid offered negatively and significantly affected WTP for improved water. On the other hand, results from the double-log regression model showed that education, household income and ownership of a water tank were positive factors influencing household water consumption. In addition, household size, distance and years of using source were negative determinants of household water consumption. The implications of the study are that factors such as age, income, level of education, gender, distance and household size should be considered when setting domestic water tariffs and designing strategies on demand management.