Factors affecting decision and willingness to pay to connect to pipe water of households: a case study in Vietnam
Authors: Tran Thi Hoang Mai, Le Phuong Nam, Nguyen Van Song, Nguyen Van Huong, Nguyen Dang Que, Thai Van Ha, Louie Marie T. Eluriaga
Academy of Strategic Management Journal
: Volume 20, Special Issue 6 : 1-15
Publishing year: 9/2021
Gia Lam district is an urban district, but 13 out of the 22 communes of Gia Lam
district, representing 71% of the district's population, have no access to piped water services.
This study was conducted to analyze the factors affecting households' decision and
willingness to pay to connect to piped water. Primary data was collected by interviewing 200
randomly household heads. The contingent valuation method was used as well as data
analysis by descriptive statistics and econometric models. The results showed about 78% of
households in study sites were willing to shift to using piped water. The significant factors
affecting the decision to connect to piped water system include households' income,
education level, number of children in household, household's perception on quality of well
water and monthly water expenditure. The willingness to pay for piped water services
averages 4,314 VND/m3 or 152.95 thousand VND per month, accounting for 2.56% of the
household's income. However, households cannot afford the full cost of installing piped water
networks, so the government may subsidize the installation.
Contingent Valuation Method, Piped Water, Willingness to Pay, Logit Model, Marginal Effect