Willingness to Pay for Access to Piped Water using Hedonic Pricing Model

Abstract

The main objective of this study is to estimate the determinants of drinking water supply on the housing rental value using survey based data for the years 2013-14 in Pakistan. Hedonic pricing model is applied using rental value of the houses per month as dependent variable. Piped-water connection and number of rooms show significant impact on housing prices for both rural and urban. Using marginal implicit pricing method, Marginal willingness to pay (MWTP) is also calculated using the median of the rental values of the houses for both rural-urban regions and owned-rented houses. PKR 1676 and PKR 332 are willing to pay per month for urban and rural areas respectively to have quality of water inside their houses. On the same lines, PKR 1087 and PKR 521 are computed values of WTP for these who have their own houses and living on rent respectively.How to Cite:Kiani, A., Andleeb, Z., & Qureshi, J. A. (2022). Willingness to Pay for Access to Piped Water using Hedonic Pricing Model. Etikonomi, 21(1), 79-88. https://doi.org/10.15408/etk.v21i1.16984.