Estimating averting expenditure in domestic water use: Evidence from Ghana

Abstract

Safe water is described as an important resource for the survival of mankind. The outbreak of the Covid-19 pandemic has made safe water ‘super’ important and critical for the survival of mankind. Most developing countries, especially in Africa, incur additional costs in order to enjoy improved, if not safe domestic water supply. Using the averting expenditure method, this study estimates how much urban households in the Greater Accra Region of Ghana spend to improve the quality of domestic water they use. The study provides evidence that households spend Ghs84.30 ($14.70) per month, which constitutes 13.25% of their income. These estimates are very informative to the supplier in determining the economic viability of making the required quality of water available to households.