TOWARDS A SUSTAINABLE ALLOCATION OF POTABLE WATER IN GHANA: EVIDENCE FROM KUMASI

Abstract

The provision of potable water for human sustenance both now and in the future is one of the most critical issues in the world today. This paper sought to assess the sustainability of potable water distribution in Ghana through the Contingent Valuation Method in Kumasi, Ghana’s second largest urban centre. Willingness-to-pay values were elicited by means of a bidding game technique through administered questionnaire to communities in Kumasi, where potable water supply was either non-existent or very irregular. The analysis shows that Ghana Water Company Limited (GWCL) could increase current tariffs by about 300% without hurting consumers, since, that would rather increase welfare considerably and facilitate sustainable allocation of potable water. A sizeable consumers’ surplus exists, which is an indication of households being susceptible to extortion by water vendors. This requires urgent government intervention to save some poor residents of Kumasi from undue exploitation as well as the return to the consumption of unwholesome water that would increase pressure on medical and Health Insurance resources.

Keywords: Consumers’ Surplus, Ghana, Potable Water, Welfare, Willingness to pay

Article Review Status: Published

Pages: 1-10 (Download PDF)

Creative Commons Licence
This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License

  • Our Journal Publishing Partners