Willingness to pay and willingness to work for improvements of municipal and community‐managed water services

Abstract

Abstract This study investigates household preferences, in labor time and monetary terms, for improved water services in Guatemala using sequential contingent valuation questions. The household survey was implemented in areas served by municipal and community‐managed systems, which allows for comparing household preferences under those governance approaches. Results show that respondents with municipal services are willing to pay a substantial increase (more than 200%) in their water bills for reliable supplies of safe drinking water. They are also willing to work approximately 19 h per month for such improved services when labor hours are proposed as the payment vehicle. In contrast, households with community‐managed services are not willing to pay or work for service improvements, even though they report to be quite dissatisfied with current services. Policy implications are discussed.