Comparing Willingness to Pay for Improved Drinking-Water Quality Using Stated Preference Methods in Rural and Urban Kenya. Appl Health Econ Health Policy. 2014 Nov 8.
Brouwer R1, Job FC, van der Kroon B, Johnston R.
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1Department of Environmental Economics, Institute for Environmental Studies, Vrije Universiteit, De Boelelaan 1087, 1081 HV, Amsterdam, The Netherlands, r.brouwer@vu.nl.
BACKGROUND: Access to safe drinking water has been on the global agenda for decades. The key to safe drinking water is found in household water treatment and safe storage systems.
OBJECTIVE: In this study, we assessed rural and urban household demand for a new gravity-driven membrane (GDM) drinking-water filter.
METHODS: A choice experiment (CE) was used to assess the value attached to the characteristics of a new GDM filter before marketing in urban and rural Kenya. The CE was followed by a contingent valuation (CV) question. Differences in willingness to pay (WTP) for the same filter design were tested between methods, as well as urban and rural samples.
RESULTS: The CV follow-up approach produces more conservative and statistically more efficient WTP values than the CE, with only limited indications of anchoring. The effect of the new filter technology on children with diarrhea is among the most important drivers behind choice behavior and WTP in both areas. The urban sample is willing to pay more in absolute terms than the rural sample irrespective of the valuation method. Rural households are more price sensitive, and willing to pay more in relative terms compared with disposable household income.
CONCLUSION: A differentiated marketing strategy across rural and urban areas is expected to increase uptake and diffusion of the new filter technology.
