We estimate willingness to pay (WTP) for better quality of tap water on a unique cross-section sample from 10 OECD countries. On the pooled sample, households are willing to pay 7.5% of the median annual water bill to improve the tap water quality. The highest relative WTP for better tap water quality was found in the countries with the highest percentage of respondents being unsatisfied with tap water quality because of health concerns. The expected WTP increased with income, education, environmental concern, and health and taste concerns with the tap water.
Predicting residential water demand for non-connected households that obtain connections is a crucial issue for water planners in developing countries. We propose a technique derived from Heckman (1976) to accurately measure the expected increase in water use due to access to tap water while controlling for differences in characteristics between connected and non-connected households. Illustration is made on a cross section of 246 households from Dakar, Senegal. We show that getting a tap connection induces an expected increase in water use of 26 L per capita per day.
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