Willingness to pay for water on the Guyana east coast Available to Purchase

Improvements in the water supply and wastewater sectors in Guyana are recognised as being critical to poverty reduction and sustainable economic growth. Such improvements, however, cannot be effected without the water utility companies maximising cost recovery which requires a high level of willingness to pay on the part of consumers. This research was carried out on the east coast of Guyana to establish households' willingness to pay for water supply improvements. A questionnaire was used to collect data on several socio-economic variables, water supply status, utility payment preferences and willingness to pay. Using probit statistical techniques, willingness-to-pay values were estimated. The results of this study are consistent with others, that show that household income, level of education, employment status of the head of the household and level of consumers' awareness are the principal factors influencing willingness to pay for services. The results also show that the demand is inelastic and that the numerical value of price elasticity (−0·85) is close to one which may be due to the current wide use of the rainwater harvesting substitute. It is recommended that Guyana Water Incorporated consider the results of this study in its policy formulation for improving its services.