ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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An Economic Analysis of Demand for Water Quality

This paper makes an assessment of demand for drinking water quality. It is assumed that individual households are able to value changes in water quality services in the absence of an explicit market. If water quality improves and consumers believe they are better off in some way, then there will be willingness to pay money for securing this improvement. This willingness to pay (WTP) reflects economic valuation of improved water quality. Spending power of households and educational background are important determining factors in WTP. Any sustainable water management policy decision through imposition of water charge needs to take income distribution pattern and ability to pay across expenditure classes into consideration.

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