Willingness to pay for the quality of drinking water

Abstract

This paper presents households behaviour in terms of willingness to pay for safe drinking water in Hyderabad city, Sindh, Pakistan. The multinomial logit model is estimated for averting water contamination behaviour. Measures of awareness and households' wealth are incorporated into the model to account for joint production of utility. The study finds that measures of awareness such as different levels of formal education of decision-makers and their informal exposure to mass media have statistically significant effects on the willingness to pay for drinking-water purification devices that can be adopted at home. © The Pakistan Development Review.