Averting Expenditure - Measure of Willingness to Pay

Abstract

This paper makes estimation on demand for quality water.  In the absence of an explicit market, individuals are able to value changes in water quality.  When the consumers believe to keep up good health they need quality water there will be willingness to pay for improved water.  This willingness to pay (WTP) explains economic valuation of improved water quality. Spending power of households and educational background are important determinant factors of WTP.  The decision is through income distribution pattern and ability to pay.

Keywords: WTP, Averting Expenditure,Quality of water