Estimating Willingness to Pay for Drinking Water Quality in Nowshera Pakistan: A Domestic Study for Public Health

Abstract

This study discloses the behavior of household’s willingness to pay for improved water quality in Nowshera city. Simple regression model is used to reveal the preferences of household’s towards safe water. Study empirically concluded that awareness and income has significant impacts on household decision making for better water quality in order to reduce the health risk and vulnerability towards water born diseases such as typhoid, dysentery, cholera and diarrhea. Formal and informal education also has crucial effect on demand for purified water. Study further shows that those who have more income and high level of qualification are more willing to pay for clean and safe drinking water. Background of this research have concern towards low water quality, which causes the health hazards to human life which may increase their health cost and effect the decision of HH regarding willingness to pay. Primary data was collected from 200 households of Nowshera. Results showed that income is the one of main factor which has major effects on demand of enhanced water quality. More people were willing to pay to the government in order to get safe water while very less amount of HH were in favor of private pr respectable organizations.  Filter cost also indicated some relationship with WTP, those who have more filter cost was able to pay more because their cost was more than the filtration cost. Health expenditure exposed the positive relationship with demand for purified water, high health expenditure bearing HH were more able to pay to reduce their cost. Awareness and income were the key factor for estimating the willingness to pay for improved quality of water to get good and healthier life.