Willingness to Pay for Improved Urban Domestic Water Supply System: The Case of Hanoi, Vietnam
2022
Nuong Thi Bui | Stephen Darby | Trang Quynh Vu | Jean Margaret R. Mercado | Thao Thi Phuong Bui | Komali Kantamaneni | Thuong Thi Hoai Nguyen | Tu Ngoc Truong | Hue Thi Hoang | Duong Du Bui
Access to a reliable and safe domestic water supply is a serious challenge for many developing countries worldwide. In the capital of Vietnam, Hanoi, the municipal government is facing a number of difficulties in providing sufficient water in a sustainable manner due to the increasing urban population and the serious pollution of both surface and groundwater resources, but this is also due to a lack of resources to invest in the supply system. This study aimed to investigate water users&rsquo: willingness to pay for the improvement of Hanoi&rsquo:s domestic water supply system. A contingent valuation process based on a survey of 402 respondents was used to explore citizens&rsquo: willingness to pay (WTP) for the improvement of their urban water supply. The results show that Hanoi&rsquo:s urban communities (more than 90%) were generally satisfied with the quantity of their water supply, but tended to be dissatisfied with its quality, with 80% of the respondents using advanced water purifiers before drinking and cooking. Respondents were also concerned about the overall reliability of the service, with 40% of respondents indicating that they received no check and maintenance service. A WTP regression model was developed based on the survey findings. The average WTP is 281,000 dong/household/month (approximately 12.2 USD at the exchange rate of 1 USD to about 23,000 VND), equivalent to 1.4% of the average household income at the end of 2019, indicating the level of affordability of monthly water payments among Hanoi citizens.
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