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Water bill estimation when price is cryptic: experience from Windhoek, Namibia

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dc.date.accessioned 2011-12-02 en
dc.date.accessioned 2020-02-19T22:35:02Z
dc.date.available 2020-02-19T22:35:02Z
dc.date.issued 2015-08-25 en
dc.identifier.uri http://hdl.handle.net/20.500.11910/3580
dc.description.abstract For water policy to be effective, policy makers must know how water users perceive and respond to changes in water prices. However, it is not uncommon for water prices faced by consumers to be unclear. In Windhoek, Namibia, the marginal and average water price is difficult to calculate from the information provided in users' utility bills. This paper applies a hedonic pricing approach to investigate price perceptions of water users in a setting with cryptic price information. Using self-reported water charges as the dependent variable, the pricing model utilises reported utility characteristics and other factors that may affect perceived price. Low-income standpipe water users report a weighted average monthly charges of N$24.68, whereas users in high income segments report N$521.34. This reflects differences in service levels, possible subsidies to low-income users and potential errors in respondents' understanding of their water price. Average price per litre (N$11.78 for the low-use segment; N$1.89 for the highest segment of Tier 1 water use) tends to be perceived as higher by those with lower water use even though average prices in the relevant range should generally be identical. en
dc.format.medium Print en
dc.subject WATER MANAGEMENT en
dc.subject NAMIBIA en
dc.subject POVERTY en
dc.title Water bill estimation when price is cryptic: experience from Windhoek, Namibia en
dc.type Journal Article en
dc.description.version Y en
dc.ProjectNumber N/A en
dc.Volume 80(2) en
dc.BudgetYear 2012/13 en
dc.ResearchGroup Economic Perfomance and Development en
dc.SourceTitle South African Journal of Economics en
dc.ArchiveNumber 7049 en
dc.PageNumber 264-286 en
dc.outputnumber 5695 en
dc.bibliographictitle Karuaihe, S., Wandschneider, P. & Yoder, J. (2012) Water bill estimation when price is cryptic: experience from Windhoek, Namibia. <i>South African Journal of Economics</i>. 80(2):264-286. en
dc.publicationyear 2012 en
dc.contributor.author1 Karuaihe, S. en
dc.contributor.author2 Wandschneider, P. en
dc.contributor.author3 Yoder, J. en

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