Cross-subsidies for improved sanitation in low income settlements

Assessing the willingness to pay of water utility customers in Kenyan cities

Dados Bibliográficos

ID11914729
AutoresCharisma Acey (0000-0002-4074-2717, University of California, Berkeley), Joyce Kisiangani, Patrick Ronoh, Caroline Delaire (0000-0001-8359-6847), Evelyn Makena, Guy Norman (Water & Sanitation for the Urban Poor), David I Levine (0000-0002-7210-5499, University of California, Berkeley), David Levine (0000-0001-6712-5367), Ranjiv Khush (0000-0002-2474-1191, Retina Institute), Rachel Peletz (0000-0002-9256-0800, Retina Institute, autor correspondente)
Ano2018
Volume115
Páginas160-177
Data de publicação2018-11-30
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoWorld Development (JOURNAL)
Identificadores do periódicoISSN: 0305-750X • E-ISSN: 1873-5991
EditoraElsevier BV (PUBLISHER)
DOI10.1016/j.worlddev.2018.11.006
OpenAlexW2901998785
IdiomaEN
Citações recebidas11
Referências citadas49

Most residents of the developing world do not have access to safely managed sanitation services, and large financial investments are required to address this need. Here we evaluate surcharges on water/sewerage tariffs as an option for supporting these investments in low-income neighborhoods. We investigated willingness-to-pay (WTP) for a pro-poor sanitation surcharge among customers of two urban water utilities in Kenya. Applying qualitative and quantitative methods, we conducted semi-structured in-depth interviews, focus-group discussions, and a double-bounded contingent valuation method for measuring WTP. We varied scenarios quasi-experimentally to study the effects of messaging and surcharge characteristics and evaluated factors associated with WTP. Our study finds that mean WTP was 290 KES (USD 2.9) per month, about 8% of the average water bill; median WTP was 100 KES (USD 1). In a multivariate analysis, WTP was significantly higher among customers that were younger, wealthier, shared toilets, and had higher water bills. WTP was also higher among customers that trusted the utility and distrusted the county government. Of our randomized scenarios, only the bill type was found to significantly influence WTP; WTP was higher if the surcharge was presented as a proportion of the customers’ last water bill vs a flat amount. Our findings suggest that in a sector that struggles to provide universal access to sanitation services, cross-subsidies may offer a means to support financing of safe sanitation for low-income households. These results indicate there are opportunities for cross-subsidies in urban Kenya that may be relevant for a wider understanding of surcharge payments that support basic services for low-income citizens

Agricultural economics · Business · Contingent valuation · Developing country · Economic growth · Economics · Kenya · Sanitation · Sewerage · Socioeconomics · Subsidy · Willingness to pay · Child Nutrition and Water Access · Economic and Environmental Valuation · Global Maternal and Child Health · Environmental Engineering