Households’ Willingness to Pay and Payments for Water Services by the Akwa Ibom Water Company Limited, Akwa Ibom State, Nigeria

Ubi-Abai, Itoro (2024): Households’ Willingness to Pay and Payments for Water Services by the Akwa Ibom Water Company Limited, Akwa Ibom State, Nigeria.

Abstract

This study assessed households’ willingness to pay and payments for water services supplied by the Akwa Ibom Water Company Limited using the Heckman two-step analysis. Using the survey research design, these households comprised households that have access to 5.06% of water supply services from the Akwa Ibom Water Company Limited a la Ubi-Abai (2024); and households that live close to the water company but do not have access to their water services. A sample of 200 households was selected using the purposive non-probability sampling technique. Data were obtained using structured questionnaires. The weighted Kappa and Cronbach Alpha coefficients showed that questions in the questionnaires were valid and reliable. The cluster analysis revealed that 38 households used water efficiently. Furthermore, the Heckman two-step analysis revealed that factors such as water use efficiency, water quality, income and family size influenced households’ willingness to pay and monthly water payment levels.

• Item Type: MPRA Paper
• Language: English
• Keywords: Akwa Ibom, Heckman, Household, Water, WTP
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics; D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory; D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being

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