Abstract
The purpose of the article is to analyze and determine the willingness of citizens to pay for improving the quality of water services (the income derived from the consumption of water services does not cover the costs of providing such services). The study focuses on Ethiopia’s metropolitan areas (including households in town Mettu), as it is the problem of financial scarcity in Ethiopia that is particularly relevant and access to water services is a key component in calculating the human poverty index for most developing countries. Based on a survey of 79 Mettu town households, it is justified that residents view water not as a public good but as an economic good, as they are prepared to pay for it. The survey concluded that an average of 69% of Mettu households is willing to pay for improved water quality, with household income, water supply satisfaction, and supply price having a strong impact on households’ willingness to pay for improved water services. In particular, the older the locals are and the higher their income level, the more they are willing to pay for improved water quality and security of water supply. At the same time, rising levels of education in Mettu residents reduce their willingness to incur additional financial costs, more educated people view water services as a boon to the authorities. The results of the study proved that while providing local authorities with high-quality water supply services, more than 80% of households are ready and able to pay for services at a price that exceeds the tariff rate for water supply costs. The article stated that increasing the quality of water supply services by increasing the number of tariffs for water use will contribute to the growth of the financial revenues of local authorities, which will ensure the provision of water supply in the required quantity and on a stable basis. Keywords: improved water supply services, willingness, bidding Prices and tariff structure.
Highlights
Responses from the economic valuation question of mean Willingness to pay (WTP) reveal that, the mean willingness to pay for the improved water supply services of the sampled households were 16.32 cents per bucket for water
From the collected data the frequency of willingness to pay ranges on household bid is more affect the price of water. a higher income was willing to pay for an improved water quality and reliability of supply
The older person the more they are willing to pay for improved water quality and reliability in Mettu town
Summary
It is contributed to sustain the life, and our general activities of the environment. It is one of the precious gifts to human kind and most basic human needs. Water plays a great role in socio-economic development of human beings and survivals and economic developments. Domestic water supply is one of the fundamental requirements for human life. Life cannot be sustained beyond a few days and the lack of access to adequate water supply leads to the spread of diseases. The provision of safe and adequate potable water in urban areas in both developed and developing countries is essential for life (World health organization, 2017 Washington D.C)
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