An estimation of the willingness to pay for improved water and sanitation services among rural farming households - A case study of Ijebu East Local Government Area, Ogun State

Abstract

A study was carried out in Ijebu East Local Government Area (LGA) of Ogun State to investigate the willingness to pay for improved water and  sanitation services among rural households. This was done against the backdrop that findings suggested that households in rural areas were behind in terms of these services and as a result would be defeating one of the goals of the MDGs. Both willingness to pay (WTP) and actual ability to pay (AATP) was estimated for the households selected in the rural areas of this LGA. Findings from the research showed that for both options of payment for water and sanitation services, the ATP was less than WTP
which is an indication of the fact that there was no reluctance on the part of the respondents to pay for the services. The probit regression model  showed the factors that determine the willingness of rural households to
pay for better access to potable water. Household monthly income,  awareness of health implication of unsafe drinking water and sex of  household head were found to significantly influence household’s  willingness to pay for better access to potable water. Also, the factors that determine the willingness of rural households to pay for improved toilet or sanitary service included household monthly income, awareness of health implication of poor toilet facility, sex of the household head, education of household head, as well as the presence of unmarried daughters above 18years of age which were found to significantly influence household’s willingness to pay for improved toilet facility in both village settlements.

Key words: Willingness-to-pay; actual ability-to-pay; sanitation services