Valuation of the benefits of improving drinking water quality for households in Dhaka

Abstract

Consumption of contaminated drinking water brings about economic losses to households in Dhaka. Hence, this study attempts to appraise the social benefits of improving drinking water quality by estimating the monthly WTP for improved quality of drinking water using the contingent valuation method. Thirty households in Dhaka were surveyed, of which 70Yo were willing to pay for safe drinking water, and the mean monthly WTP was found to be BDT 4066.04. The study finds that disease averting behavior and exposure to information media have a positive effect on the WTP. Therefore, the paper emphasizes the importance of public campaigns using mass media to inform people about water quality, purification methods, hygiene and safe storage of drinking water, and encourage them to share such information with other household members in order to improve their perception of drinking water quality and influence coping behavior.