Hydraulic ram pumps and Sling Pumps

OP-32-EAdvantages and disadvantages of hypothetical behaviour studiesAdvantagesDisadvantages• If carefully designed and conducted, producesreliable estimates of the future demand forwater• Hypothetical bias: because the user is not wellaware of the nature of the good or servicesurveyed• Users have the opportunity to choose what theywant and what they are able and willing to pay• Strategic bias: when users think they couldinfluence the decision about the project with their• If behavioural models are used, it is possible to answersestimate the impact of changes in prices,policies, and welfare on the demand• Compliance bias: users give replies they believethe questioners would find most satisfactory• Planners can use the information about WTP todesign policies (about credits, tariffs,subsidies), allocate resources, and designwater supply systems• Expensive method which requires goodknowledge about the communities• The bidding game method and the referendum methodThe bidding game method is also an hypothetical behaviour study, presented as a negotiation betweenthe interviewer and the respondent, moving within a range of potential prices for a water supplyimprovement until bidding settles at a final value. The summation of WTP bids for all the householdsserved by a project is an estimate of the total benefits of a project and can be compared with the costsof the project to decide whether the investment is justified. Models derived from the bidding gamedescribe the probability that a particular family will use a new water source. This method causes someproblems because responses could be influenced in some way by the interviewer. The answers aboutWTP are always around the first price mentioned or starting point of the survey. The Referendummethod uses an ended question, such as: ‘Would you be willing to pay X monthly for the provision ofdrinking water supply?’ It could be argued that this method is more suitable because people act as theydo in a market place.• Community WorkshopsThe development of studies to assess a community’s demand or willingness to pay for water supplyprojects is often expensive. Contingent valuation or actual behaviour studies require complextechniques and procedures that a community cannot carry out by itself. For this reason it may be betterto support and guide communities to carry out more simple studies to obtain general data and a goodinsight into their own WTP. One possibility is the development of community workshops whereinstitutions act as facilitators and users express their WTP through voting.Box 5. An alternative way to measure WTP: community workshopsStudies like the bidding game require sound procedures and experienced interviewers. An alternative approachthat works particularly well if the community has confidence in the agency staff facilitating the project and inrural areas are community workshops. One or two meetings can be held with user groups to discuss withdifferent kind of users about their willingness to pay for improved services. The starting point of the meetingshould be the presentation of clear information about cost, tariffs, benefits and the financial arrangementsrequired for each technology or level of service. At this point some special techniques can be used (forexample pictures, films, drawing, charts) to help users to understand the dimension of the project. In addition,the language used by field staff has to be simple and understandable. Users then can vote on the differentoptions, and facilitators will ask users to explain the reasons why they are willing to pay or not (users can writedown their opinions or facilitators can provide some cards that users can choose). This approach requires theability of both men and women to take part in votes and a high level participation by users. If the improvementproves to be financially feasible, a formal agreement has to be established with all users before the system isintroduced.This technique requires the participation of a representative sample of users (in quantity and quality)and the provision of clear and understandable information for users about cost, tariffs, benefits,financial options, etc.20