Demand for Water Supply Improvement in Uttar Pradesh, India: Quality & Quantity

The study makes an assessment of the demand for water supply improvement in Uttar Pradesh. Using primary level data from Lucknow and Kanpur districts, findings reveal that people are willing to pay for the water services that are reliable both in quantity as well as in quality. This willingness to pay reflects economic valuation of improved water supply. The findings show that willingness to pay not only depends on income but also on the socio-economic characteristics of households as well as source of drinking water. The analysis points out that even if the households are required to bear the cost of service improvement, the water charges will still be well within the affordability capacity of people. Average mean WTP for safe drinking water supply and for 24 hour water supply is approximately 1 percent of average household income within the study area. All estimates lie below the World Bank's benchmark which is 4 percent of the household income. Therefore, there is scope for improvement for water service provision in the study area even if its at a higher water price.