Sidrat Asim Pakistan Urban Forum Willingness to Pay Study for Improved Water Supply Services in Karachi.

Slides:



Advertisements
Similar presentations
Water Services for the Poor – the Manila experience Global Forum on Sustainable Development Paris, France December 18, 2003.
Advertisements

Valuation 9: Travel cost model
A Few Basic Principles of Economic Valuation of Ecosystem Services John Loomis Dept. of Ag & Resource Economics Colorado State University’ Fort Collins,
Industrial Statistics In Afghanistan Economic Statistics Division Central Statistics Organization(CSO) Afghanistan 1.
The gathering of information to make marketing decisions.
Energy Technologies for the Poor Technology for poverty alleviation: Relevance and Prospects in South Asia October 10-11, 2003 British Council, New Delhi.
WILLINGNESS AND ABILITY TO PAY FOR SANITATION LOANS IN RURAL KENYA Josphat Martin Muchangi 1, Dr. George Kimathi 1, Vincent Ouma 1, David Makau 1 1. AMREF.
Assessing Benefits for Environmental Decision Making
Assessing Benefits for Environmental Decision Making Chapter 8 © 2007 Thomson Learning/South-WesternThomas and Callan, Environmental Economics.
Economics 101: How to Measure Indirect Values Benjamin S. Rashford Agricultural and Applied Economics University of Wyoming.
The Theory of Consumer Choice
Valuation 8: Defensive expenditures (HPF) Revealed preference methods Defensive expenditures Damage costs Defensive expenditures: A simple model An example:
Assessment of Climate Change Impacts on Electricity Consumption and Residential Water Use in Cyprus Theodoros Zachariadis Dept. of Environmental Science.
 Homework #2 due Thursday  Exam #1 on Thursday  Writing Assignment due Oct. 27th.
March North 44 th Street, Ste. 150 Phoenix, AZ
Efim B. Galitskiy Elena S. Petrenko Elena G. Galitskaya (The Public Opinion Foundation) Report at the Theoretical and Practical Conference: “International.
1 Travel Costs Scott Matthews Courses: and Lecture /25/2004.
Integrated Watershed And Coastal Areas Management: Fond D’or Watershed Valuation Study Amanda Richardson Mark Kolonoski Josh Smith Ben Rumsey.
Demographic change, pension reform, and household saving in urban China.
AGEC 608 Lecture 13, p. 1 AGEC 608: Lecture 13 Objective: Discuss various ways to estimate value of impacts using revealed preference approaches, highlighting.
AGEC 608 Lecture 14, p. 1 AGEC 608: Lecture 14 Objective: Provide overview of contingent valuation method (CVM) and review strengths and weaknesses of.
Assessing Costs and Benefits of Environmental Policies & Regulations.
Valuation Methods focus on conventional market approaches Session Objectives: Identify key steps in valuing the environment Use selected methods to analyze.
 Homework #8 due Next Thursday  Group Outline due Nov. 11 (next Thurs.)
Measuing Preferences, Establishing Values, The Empirical Basis for Understanding Behavior David Levinson.
DATE: 26 TH AUGUST 2013 VENUE: LA PALM ROYALE BEACH HOTEL BACKGROUND OF GHANA LIVING STANDARDS SURVEY (GLSS 6) 1.
UNECE Workshop on Consumer Price Indices Session 3: Calculation Expenditure Weight Presentation by Cengiz Erdoğan, TurkStat October Istanbul, Turkey.
2000/2001 Household Budget Survey (HBS) Conducted by The National Bureau of Statistics.
Presented by: Fadhila MICHAEL C. NAUGHTON. Purpose  Develop and demonstrate a method for deriving and testing regulatory preferences within and across.
Valuation of Avoiding Arsenic in Rural Bangladesh: An Averting Behavior Analysis Sonia Aziz Kevin J. Boyle Thomas Crocker.
Econ 231: Natural Resources and Environmental Economics SCHOOL OF APPLIED ECONOMICS.
Page 1 Walk Through the 2011 Recreational Boating Statistical Abstract Section 1 Boating Population 1.Participation Estimates Participation Study.
TOURISM DATA COLLECTION. Data collection Situational analyses – to perform situational analysis should be carried out marketing research to obtain quantitative.
ECONOMIC IMPACT OF AIR POLLUTION ON HUMAN HEALTH
Welfare economics Outline Expressing changes in human well-being (utility) in monetary terms Deciding between monetary measures that are equally theoretically.
© Copyright The Regents of The University of California The Nicholas C. Petris Center on Health Care Markets & Consumer Welfare University of California,
Urban Water Use Characteristics Saroj Sharma 2  Domestic (residential)  Commercial  Industrial  Public use  Miscellaneous -distribution system cleaning.
In Confidence WESTERNPORT WATER COMMUNITY CONSULTATION WATER PLAN 2008 – 2013.
Caucasus BalticsFormer Soviet Republics Central AsiaEastern Europe * Tajikistan data from year 1993 ** Turkmenistan data from year 1990 Older Population.
LOCAL GOVERNMENT INFRASTRUCTURE NEEDS vs DEVELOPMENT CHARGES.
1-2 November 2004 Who visits British forests and what do they do? Sheila Ward Forestry Commission Economics & Statistics United Kingdom.
Francis Pereira, Ph.D. Director, Industry Research Institute for Communication Technology Management (CTM) Maslow’s Hierarchy of Needs and ICT: Challenges.
Reproductive and Overall Health Outcomes and Their Economic Consequences for Households in Accra, Ghana Allan Hill and Günther Fink Harvard Center for.
On visible choice set and scope sensitivity: - Dealing with the impact of study design on the scope sensitivity Improving the Practice of Benefit Transfer:
A Study on Retailer’s Perception about Anand Asahi Water meters.
Putting Economic Value to Nature Protection Direct and Indirect Costs and Benefits by Gernot Bäurle
Outline of presentation Travel cost method – concept, example, assumptions Consumer surplus related to TCM Visitor’s table Demand curve Concerns regarding.
Tourism Statistics and Tourism Satellite Accounts in Turkey
HBS Results, Topics  HBS general characteristic  Indicators obtained based on HBS  The main characteristics of households under the survey 
Confidential & Proprietary Copyright © 2008 The Nielsen Company Internet Usage & Technology Trends January - December 2008 Panorama Survey Nielsen Media.
Environmental Economics Class 4. Valuing the Environment: Methods Methodologies available for quantifying benefits and costs. Valuation techniques available.
The Economic Benefit of National Park Yann-Jou Lin*, Bau-Show Lin, Ting-Ju Lin, Wen-Chin Huang Professor, Dept. of Horticulture Science, National Taiwan.
Quality of life of alcohol-related diseases and road accidents in Switzerland: An economic assessment France Priez The University of North Carolina at.
Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 3 Valuing the Environment: Methods.
Statistics Division Beijing, China 25 October, 2007 EC-FAO Food Security Information for Action Programme Side Event Food Security Statistics and Information.
Measuring Environmental Benefits. In principle, benefits can be represented by consumer surplus, or the area under the demand curve: Market good sold.
Assessing Benefits for Environmental Decision Making Chapter 7.
Chapter 5 Consumer surplus Household choice in input markets.
1 Public Hearing User Rate Adjustments April 8, 2008.
© 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Nonmarket Values Property, ideas and experiences can have “value” even if not exchanged in a market.
Circular Flow Model and Economic Activity
Economic valuation OF NATURAL RESOURCES
Use and Effectiveness of Municipal Water Restrictions During Drought in Colorado Bobbie Klein and Doug Kenney 2002 Drought – the Context Study Methodology.
Up-scaling of Basic Sanitation for the Urban Poor (UBSUP) The UBSUP Preparatory Study Objectives, Approach & Key findings 1.
Conducting Marketing Research Chapter 29. Sec – The Marketing Research Process The steps in conducting marketing research The difference between.
Evaluating a Product Line Extension Opportunity
A Study on ‘Mechanisms for Coping with Power Outages’
Monitoring and Evaluation for Poverty Reduction
10. Valuing Impacts from Observed Behavior: Indirect Methods
Presentation transcript:

Sidrat Asim Pakistan Urban Forum Willingness to Pay Study for Improved Water Supply Services in Karachi

Problem Identification  Clean drinking water remains the greatest perceived need of the people of Karachi  Only 4 hours of continuous water supply  Flat Rate Tariff based on floor areas results in high consumption  Low Tariff does not cover Operation and Maintenance Cost  Public forced to buy water from private water tankers  Bottled water usage for drinking purpose is high

Water Tariff Source: KWSB

Water Supply Summary in South Asia Source: Water in Asian Cities, ADB report

Objectives  examines the current water usage habits of the people in the city using the Averting Expenditure Approach

Theoretical Framework Valuation Stated Preference Contingent Valuation Method Conjoint Analysis Revealed Preference Averting Expenditure Approach Travel Cost Method Hedonic Pricing Method Cost of Illness Methods

Averting Expenditure Approach  Strengths:  based on observed behaviors and market data  relatively simple to do  Weaknesses:  underestimation of the true WTP

Averting Behavior Water Tankers Bottled Water Suction Pumps Boring Wells Water Purification

Description of the Study Site

Karachi

Water Supply  residential water connections in Karachi  58% households connected  Water demand estimated at 1080 million gallons daily (MGD)  Water Supply is limited to 650 MGD  K-IV Project may augment water supply to 1300 MGD in 5 years  Water Tanker mafia siphons off over 40% water supply

Gulshan-e- Iqbal  One of eighteen towns in Karachi  Main residential area of the city  Population of over a million people  Educational hub of the city with a concentration of higher education institutions within its vicinity

Methodology Primary Survey

Survey Site

Survey Face to face interviews Representative of all income groups and ethnicities in Karachi Conducted on public holidays in last week of December households visited by eleven surveyors Population: Connected Households Sample: 400 households

Results Descriptive Statistics

Importance of Water 37% of the respondents rated water as the most important public utility

Ratings of various public goods Water ranks second most important public utility after health

Income and Expenses Households spend the least amount on piped water

Income

Source of Water used for Washing 99% use piped water as primary source of water for washing 56% use boring wells as a secondary source for water 28% use water tankers as a secondary source for water

Source of Water used for Drinking 60% people use piped water as a primary source 22% use mineral water a 4% use water from water tankers. 36% use mineral water as a secondary source of drinking water

Current Water Satisfaction Surveyed households receive an average of 27 hours of water supply in a week Users were only moderately satisfied with current water supply

Coping Behavior 80% of the households run motors 10% have a well installed electric motors run for 3 hours/day Onetime cost of having a well installed was Rs on average 23% use water tankers 50% drink mineral water

Coping Cost

Coping costs by Income Coping costs are higher for higher income households

Water Purification Methods 60% of the households use some form of water purification method

Water Purification by Source Piped water users need to use water purification methods more than those who use other sources of water for drinking

Empirical Results

Household Income and Household size affect Coping costs positively. (1)(2) LABELSCoping Cost Water Purification Income Class885.0***-0.266*** (3.257)(-3.784) Household Size121.6** (2.184) Constant *** (4.579) Observations R-squared0.102

Discussion

Limitations  Study only focuses on the demand side  Study does not deal with the institutional weakness of the KWSB or issues of bill collection and financial management  Study is restricted to Blocks 4 and 7 of Gulshan-e-Iqbal town in Karachi

Thank you