International Growth Center (IGC)
A better understanding of household water use in developing countries is necessary to manage and expand water systems more effectively while analysis of pricing structure and income elasticities are crucial to devise relevant policies of subsidizing improved water supply, particularly in urban areas of developing economies.
This study aims to analyze pricing structure for better management and allocation of water, based on principles of efficiency, equity and sustainability. This study has following objectives:
Identifying inefficiencies in water supply, its usage and other environmental and health issues are central to providing a decision context for policy response and action about efficient water supply to urban households.
It is observed that on average unfiltered water consumption is high as compared to filtered water consumption. The variable sickness shows that a majority of the region’s population has reported water related diseases which implies that clean water is an important need of the households in Faisalabad. The correlation of price with residential water demand is negative while the correlation of income with residential water demand is positive. The correlation of distance and time to fetch water is negative. The household size, which is a proxy for house story, is positively associated with water consumption. It is noteworthy that the highest correlation lies between price and water demand and between with distance of water source and water consumption. Thus, price and distance are the more conducive factors which determine residential water demand in Faisalabad.
Water pricing, equity, sustainability, urban, cities
COUNTRIES OR REGIONS INVOLVED
Domestic water consumers
The Knowledge Platform is designed to promote and showcase an emerging set of approaches to water resources management that address climate change and other uncertainties — increasing the use of "bottom-up approaches" through building capacity towards implementation, informing relevant parties, engaging in discussion, and creating new networks. This is an ongoing project of the Alliance for Global Water Adaptation (AGWA) funded by the World Bank Group.