Heterogeneous preferences for water service improvements: evidence from Anuradhapura district of Sri Lanka

This study employed a choice based stated preference approach to examine the public preference and preference heterogeneity for water service improvements in rural Sri Lanka. The empirical research was carried out in Anuradhapura District of Sri Lanka, and included a survey of 160 households with piped-borne water supply served by both National Water Supply and Drainage Board and Community Based Organizations. The results found that there is strong public preference for water service improvements and households are willing to pay substantially for water service improvements, particularly for the water quality improvements. Latent Class and Random Parameter Logit model results reveal that there is significant preference heterogeneity regarding water service improvements which would not be captured by the standard Multinomial Logit model. Therefore, values generated in this study may be most helpful for decision-makers providing policy guidance in a cost benefit analysis of water supply policy options. However, water as a basic requirement for sustaining human life, any policy decisions on service improvements should be evaluated in both economic and social equity context.

DOI: http://dx.doi.org/10.4038/jepsl.v3i1.7309

Journal of Environmental Professionals Sri Lanka, Vol. 3 No. 1 2014, 1-10