Cape Verde is an African country where consumers pay one of the highest tariffs for water supply services in the world. However, the current levels of service coverage and quality still fall short from adequate, as acknowledged by local authorities and international agencies. Thus, an assessment of how much Cape Verdean households are willing to pay (WTP) for service improvements becomes a fundamental ingredient informing sector policy formulation going forward. This has been the focus of this present study. For that purpose, valuation functions were estimated using suitable estimation methods. The results show that, taking into consideration their current levels of expenditure with this service, households would in general not be WTP more for significant improvements in their current water supply services, and that household income and the age of the head of the household both have significant effects on their WTP.
- Cape Verde
- contingent valuation
- the point and interval data model
- water supply service
- willingness to pay
- First received 30 September 2015.
- Accepted in revised form 17 May 2016.
- © IWA Publishing 2016