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Improvements in domestic water services in Kelantan: are people willing to pay?


Kamaludin, Mahirah and Abdul Rahim, Khalid and Radam, Alias and Yacob, Mohd Rusli (2012) Improvements in domestic water services in Kelantan: are people willing to pay? In: National Research & Innovation Conference for Graduate Students in Social Sciences (GS-NRIC 2012), 7-9 Dec. 2012, Mahkota Hotel, Melaka. (pp. 244-255).


This study evaluates the willingness to pay by the people in Kelantan for improved domestic water services. Unsatisfactory services by the Kelantan water company threaten heavily household chores and have become a long-standing issue in the state. Excessive water consumption, rapid social and economic growths are putting heavier demands on quality of services and the water company is unable to cope with large populations. This study employs Choice Modelling (CM) method (via Choice Experiment) to examine other possible alternatives in domestic water services. In the CM method, it highlighted four attributes such as water quality (QUAL), water interruption (INT), non revenue water (NRW) and water prices (WP) in its services. Respondents are required to trade off their income for positive changes in the services. Simple and interactions of Conditional Logit (CL) models are estimated to account for heterogeneity in the selected choices of the consumers from options provided in water service attributes. It is interesting to note that of the four attributes considered in this study, reducing the frequency of water interruption becomes a priority for the population in the services. The findings of the study provide important policy implications for stakeholders suggesting that consumer preferences need to be considered in providing efficient services.

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Additional Metadata

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Economics and Management
Faculty of Environmental Studies
Institute of Agricultural and Food Policy Studies
Publisher: Faculty of Economics and Management, Universiti Putra Malaysia
Keywords: Choice modelling; Willingness to pay; Water services; Conditional logit; Marginal value
Depositing User: Nabilah Mustapa
Date Deposited: 03 Apr 2017 07:43
Last Modified: 03 Apr 2017 07:43
URI: http://psasir.upm.edu.my/id/eprint/51249
Statistic Details: View Download Statistic

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