A Toolkit for Assessing Willingness to Pay ... - WaterWiki.net
A Toolkit for Assessing Willingness to Pay ... - WaterWiki.net
A Toolkit for Assessing Willingness to Pay ... - WaterWiki.net
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32 CHAPTER 5 WILLINGNESS TO PAY<br />
Figure 5.12:<br />
Preferred strategy concerning water services and water charges<br />
Note: The data is weighted by the age and gender distribution of the Poznan urban region, census 1996.<br />
Reasons given <strong>for</strong> not improving water quality and increasing water charges are e.g. that consumers<br />
find that charges are already <strong>to</strong>o high (24 %), and that the consumers find that they are not able <strong>to</strong><br />
pay more (16 %).<br />
Stated preference analysis<br />
The stated preference analysis is exploring both the willingness <strong>to</strong> pay <strong>for</strong> improvements and the<br />
willingness <strong>to</strong> pay <strong>to</strong> avoid worsening. Fac<strong>to</strong>rs included in the analysis are:<br />
• Interruptions;<br />
• Colour;<br />
• Smell.<br />
The purpose of the analysis is <strong>to</strong> find the willingness <strong>to</strong> pay <strong>for</strong> improvements or <strong>to</strong> avoid a worsening<br />
of these fac<strong>to</strong>rs.<br />
Unplanned interruptions are included because a lack of investment might imply an increasing number<br />
of interruptions and there<strong>for</strong>e it is relevant <strong>to</strong> assess the willingness <strong>to</strong> pay <strong>to</strong> avoid interruptions.<br />
However, it should be noted that the average age of water supply pipes is reasonably young and<br />
current level of interruptions is better than most cities in the region.<br />
Two possible changes in the frequency of interruptions are included in the analysis:<br />
• Monthly unplanned interruptions;<br />
• No unplanned interruptions at all.