Hika Wana* and Oliyad Sori
Wollega University, Department of Agricultural Economics, Shambu, Ethiopia
*Corresponding Author: Hika Wana, Wollega University, Department of Agricultural Economics, Shambu, Ethiopia.
Received: December 24, 2019; Published: February 10, 2020
Water is a source of life and a natural resource that sustains life and our environment. Water supply and sanitation conditions in Ethiopia are not different from the general situation of developing countries as a whole. The study was conducted in Horo Woreda of the Horo Guduru Wollega zone, West Ethiopia. A total of 127 households surveyed in the study to generate the data used in the study.Therefore, this study was undertaken to estimate the households’ willingness to pay for the improved water supply service and its sustainability in Horo woreda with objective of recognizing factors which affect household willingness to pay for improved water and estimating willingness to pay of households for improved water using contingency valuation method in the study area. Qualitative and quantitative data was collected analyzed using Descriptive statistical tools. The response of respondents on different source of water they use were significantly different in which almost all of them use natural spring. With respect to Distances of water sources from home of the respondent about 95 respondents said that the distance is far and only 3 respondents said that the distance is near to their home which represents about 74.2 and 2.4% respectively which were the highest and lowest percentage. Of the total respondents interviewed about 96.9% of them reported that as they are willing to pay for improved water if constructed. Whereas only 3 respondents were unwilling to pay for improved water if constructed which represents 3.1% of the total respondent. Contingency valuation method confirmed that the respondents did not behave strategically as tested by student t-test. Factors that affect household willingness to pay were also analyses using logit model. According to logit model household income, family size, educational level and distance of from water source were statistically significant. Therefore, sufficient operation and maintenance training has to be provided for experts of water, energy and mineral office to improve their knowhow on improved water supply to teach society of study area.
Keywords: Logit Model; Contingency Valuation Model; Improved Water Supply
Citation: Hika Wana and Oliyad Sori. “Determinants of Household Willingness to Pay for Improved Water Supply in Horo Woreda, Oromia National Regional State, Western Ethiopia". Acta Scientific Agriculture 4.3 (2020): 01-09.
Copyright: © 2020 Hika Wana and Oliyad Sori. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.