Demand for domestic water from an innovative borehole system in rural Ghana: stated and revealed preference approaches

This study investigates demand for domestic water supply from an innovative borehole system using the contingent valuation method (CVM). We further estimate demand for current service of domestic water supply in residences using the hedonic pricing method (HPM). This is achieved through a survey from rural districts of the Greater Accra Region, Ghana. Interval regression and ordinary least squares (OLS) are applied to investigate the determinants of willingness-to-pay (WTP). We find that monthly WTP values are GHo35.90 (US$ 11.45) and GHo 17.59 (US$ 5.61) in the CVM and HPM, respectively. These values constitute approximately 3-6% of household monthly income which is consistent with earlier studies. For policy purposes, the study recommends the adoption of this cost effective technology to help ease the water burden on society.