Awareness of coping costs and willingness to pay for urban drinking water service: Evidence from Lahore, Pakistan

Journal Article (Journal Article)

The global population is rapidly urbanizing, increasing pressure on scarce water resources. Lahore, Pakistan, is a case in point, with limited options for increasing water supply to meet booming demand. We ask whether households are willing to pay more cost-reflective tariffs following a simple, randomized information treatment involving calculation of the costs of coping with poor service quality. Treated households are 20 percentage points more likely to acquiesce to increased tariffs for improved service, and median monthly WTP increases 17–18%. A simple verbal procedure can increase acceptance of price increases, offering managers a valuable tool for water demand management.

Full Text

Duke Authors

Cited Authors

  • Hasan, SM; Akram, AA; Jeuland, M

Published Date

  • August 1, 2021

Published In

Volume / Issue

  • 71 /

International Standard Serial Number (ISSN)

  • 0957-1787

Digital Object Identifier (DOI)

  • 10.1016/j.jup.2021.101246

Citation Source

  • Scopus