Abstract
This study uses contingent valuation (CV) method to elicit residential consumers' willingness to pay (WTP) for improved water supply services in Rajshahi city, Bangladesh. It identifies the factors affecting households' WTP through a multiple regression analysis. Accordingly, a sample of 150 households with piped water connection was chosen to be interviewed with the use of a face-to-face questioning technique. The results from this study show that households are willing to pay more for improved services which is important for the policy makers in devising appropriate water tariff. Among various indicators, households' income, education and type of housing have emerged as three most important factors in affecting consumers' WTP.
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