Title: Is access to reliable improved water a determinant of urban rental values?

Authors: Anthony Amoah

Addresses: Department of Economics, Central University, Accra, Ghana

Abstract: This study uses primary data and applies the hedonic price method (HPM) to provide evidence of consumer's willingness-to-pay (WTP) for improved domestic water. We compute the mean marginal WTP for access to domestic water supply in residences for both localised and non-localised ordinary least squares (OLS) models after investigating possible endogeneity issues. The study finds that access to water elasticity is 0.21 (without localisation) and 0.18 (with localisation). Again, the study finds a positive attitude towards reliable improved water supply. Interestingly, the study finds that basic utilities such as toilet facilities and access to electricity in urban residences are rather major determinants of rental values, followed by access to improved water supply. Lastly, households are prepared to spend 4%-10% of their income to improve their quality of life.

Keywords: Africa; urban; water; toilet; electricity; hedonic pricing method; willingness-to-pay; WTP; Greater Accra Region; GAR; Ghana.

DOI: 10.1504/IER.2018.095737

Interdisciplinary Environmental Review, 2018 Vol.19 No.3/4, pp.306 - 322

Received: 23 May 2018
Accepted: 05 Sep 2018
Published online: 18 Oct 2018 *

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