Evaluation of willingness to pay toward improving water supply services in Sebeta town, Ethiopia

Abstract Sebeta town is one of the rapidly growing towns in Ethiopia. Its closeness to Addis Ababa city has attracted industrial, urban development, and population growth. This development has created problems with drinking water shortages in the community. This study aimed at determining the household's willingness to pay (WTP) amount toward improving water supply services and analyzing the influencing factors of WTP. A contingent valuation (CV) technique was applied in quantifying the households' WTP and the influencing factors toward the program. The field observations, key informant interviews, and household questionnaire interviews from 250 respondents out of the targeted 280 were employed in collecting field data. Results from CV revealed that 66% of the households were WTP toward improving the water supply services beyond their current monthly water bills. Households were WTP about 20 Ethiopian Birr (ETB) above the average current water bill of 161 ETB. The binary logistic model results statistically demonstrated that independent variables of gender, age, marital status, education level, years in Sebeta, and average monthly income were significantly influencing the household's WTP at p = 0.01 and 0.05. This study provides vital hints for further research and baseline information for local administration and communities about the water supply in the area and holistic appropriation of water tariffs in line with government policy.