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Towards sustainable urban water services in developing countries: Tariffs based on willingness-to-pay studies

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journal contribution
posted on 25.02.2019 by Sam Kayaga, Kevin Sansom, Amaka O. Godfrey, Itsuro Takahashi, Daniel J. Van Rooijen
Water supply and sanitation (WASH) service providers in most towns of developing countries, such as Godey Town in Ethiopia, the case study reported in this paper, deliver less than basic services. The costs for meeting the more ambitious WASH targets of the Sustainable Development Goals will be much higher than what has previously been invested in the sector. This study showed that a tariff structure designed using affordability and willingness-to-pay data would provide higher revenues than one solely based on estimated customers’ affordability, or Ethiopian government’s tariff guidelines. As in previous studies in Ethiopia, this study highlights government’s low willingness-to-charge amidst a high customers’ willingness-to-pay. Yet, there is need to increase water tariffs in developing countries, hence, moving towards financial sustainability and supplementing the other two Ts - taxes and transfers. Based on accurate and updated socio-economic data, the tariff can also be optimised to fulfil the social equity objective.

Funding

This research was funded by Japan International Cooperation Agency (JICA).

History

School

  • Architecture, Building and Civil Engineering

Published in

Urban Water Journal

Citation

KAYAGA, S. ... et al, 2018. Towards sustainable urban water services in developing countries: Tariffs based on willingness-to-pay studies. Urban Water Journal, 15(10), pp. 974-984.

Publisher

© Taylor & Francis

Version

AM (Accepted Manuscript)

Publisher statement

This is an Accepted Manuscript of an article published by Taylor & Francis in Urban Water Journal on 27 February 2019, available online: http://www.tandfonline.com/10.1080/1573062X.2019.1581234.

Acceptance date

05/02/2019

Publication date

2019-02-27

ISSN

1573-062X

eISSN

1744-9006

Language

en

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