@article{Kinfe:249712,
      recid = {249712},
      author = {Kinfe, G/Egzabher and Berhanu, Adenew},
      title = {Valuing water supply service improvements in Addis Ababa},
      journal = {Ethiopian Journal of Economics},
      address = {2009-02},
      number = {683-2016-46880},
      series = {ETHIOPIAN JOURNAL OF ECONOMICS},
      pages = {99},
      year = {2009},
      abstract = {In many cities of developing countries, such as Addis  Ababa, water supply service is
poor. At the moment, Addis  Ababa city which accounts for over a quarter of the
nations  urban population is facing unreliable and inadequate supply  of water and
sanitation services. The paper raises crucial  issues regarding the necessity to better
understand the  demand for improved water supply service in the absence of  market
and tries to link in relation to customers’  participation in the provision of improved
water supply  service. In an attempt to examine the determinants of the  value of
improved water service and to establish how much  consumers are willing to pay, we
use a contingent valuation  method (CVM). The tobit model shows socio-economic
and  demographic variables such as Income of the household, sex  of the respondent
dummy (female = 1), Family size,  education (both secondary and tertiary level),
households'  year of stay, households not using tank as a storage,  wealth of a
household, employment status of the respondent  dummy (employed = 1) ,
households satisfaction with the  existing service dummy (unsatisfied=1), and location
of the  study site (Addis Ketema) are significant variables that  explain the willingness
to pay. The mean willingness to pay  (WTP) values are 15.34 and 20.20 cents per
bucket (a 20  liter container) above the exiting average tariff of 7.14  cents per bucket
as calculated from the tobit and probit  model, respectively. The empirical evidence is an important  input for strategic planning to ensure that improvements  proposed potentially improve cost recovery initiative and  increase the level of customer
satisfaction.},
      url = {http://ageconsearch.umn.edu/record/249712},
      doi = {https://doi.org/10.22004/ag.econ.249712},
}