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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.

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