DETERMINANTS OF HOUSEHOLDS’ WILLINGNESS TO PAY FOR WATER AND ELECTRICITY IN MOLETJIE UNDER AGANANG MUNICIPALITY, LIMPOPO PROVINCE, SOUTH AFRICA

Abstract

This paper aimed to examine the determinants of willingness to pay for water and electricity services in Moletjie community of Aganang Local Municipality of Limpopo Province. Data were collected through key informant interviews, group discussions, and household surveys from a total of 120 households using probability proportional to sample size technique. The study showed that sampled households were dissatisfied with the unreliable water and electricity services (73%) but were willing to pay to secure reliable water and electricity services (87%). The empirical evidence from ordered logit model indicates that willingness to pay for water and electricity was significantly influenced by gender, adult equivalent, household size, total household expenditure, employment status, total household income above total average household income, sources of income and connection charges. These results have policy implications for government and other stakeholders in response to dissatisfaction of water and electricity supply services. For example, research findings reinforce the need to focus on investing in building institutions, improving access to water and electricity, micro-credit and create employment opportunities for better life for all. It was recommended that there should be collective action by community members and policy-makers to improve access to water and electricity at household level.

Keywords

• households
• willingness to pay
• water
• electricity
• Aganang municipality
• ordered logit model