Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives

Water supply is an expensive investment and it is inevitable that the people have to prepare themselves for a universal hike in water prices in order to secure uninterrupted supply in the future. Inexpensive water prices cause the consumers to take water supply for granted and hence, lack of water...

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Main Authors: Mahirah Kamaludin, Kuna Sandran, A.A. Azlina
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/20070/
http://journalarticle.ukm.my/20070/1/jeko_523-4.pdf
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author Mahirah Kamaludin,
Kuna Sandran,
A.A. Azlina,
author_facet Mahirah Kamaludin,
Kuna Sandran,
A.A. Azlina,
author_sort Mahirah Kamaludin,
building UKM Institutional Repository
collection Online Access
description Water supply is an expensive investment and it is inevitable that the people have to prepare themselves for a universal hike in water prices in order to secure uninterrupted supply in the future. Inexpensive water prices cause the consumers to take water supply for granted and hence, lack of water conservation initiatives prevail. Sufficient funding is needed to implement various programs to improve water services. The costs of these programs should not be incurred by the water companies which are already burdened by the small revenue resulting from low water price. As the collection of revenue is inadequate to cover operating costs, the services rendered to the consumers are often unsatisfactory and the operational efficiency is below par. The last review of water tariff in Terengganu was done in the last two decades. Hence, with the increase in income within the last two decades, a study is needed to assess consumers’ willingness to pay for improved water services. This study employs Double Bounded Contingent Valuation Method (CVM) to estimate households’ willingness to pay (WTP) for improvements in water services in Terengganu. Monetary benefits of improved water services for the consumers in Terengganu were determined based on the value of WTP. The findings of this study will be used in identifying the frequent problems and issues faced by the government owned water supplier in Terengganu. Efficient water prices will facilitate efforts in delivering better water services and promoting greater efficiency in the financial and operational management of operators to attain financial sustainability.
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spelling oai:generic.eprints.org:200702022-10-11T09:15:12Z http://journalarticle.ukm.my/20070/ Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives Mahirah Kamaludin, Kuna Sandran, A.A. Azlina, Water supply is an expensive investment and it is inevitable that the people have to prepare themselves for a universal hike in water prices in order to secure uninterrupted supply in the future. Inexpensive water prices cause the consumers to take water supply for granted and hence, lack of water conservation initiatives prevail. Sufficient funding is needed to implement various programs to improve water services. The costs of these programs should not be incurred by the water companies which are already burdened by the small revenue resulting from low water price. As the collection of revenue is inadequate to cover operating costs, the services rendered to the consumers are often unsatisfactory and the operational efficiency is below par. The last review of water tariff in Terengganu was done in the last two decades. Hence, with the increase in income within the last two decades, a study is needed to assess consumers’ willingness to pay for improved water services. This study employs Double Bounded Contingent Valuation Method (CVM) to estimate households’ willingness to pay (WTP) for improvements in water services in Terengganu. Monetary benefits of improved water services for the consumers in Terengganu were determined based on the value of WTP. The findings of this study will be used in identifying the frequent problems and issues faced by the government owned water supplier in Terengganu. Efficient water prices will facilitate efforts in delivering better water services and promoting greater efficiency in the financial and operational management of operators to attain financial sustainability. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20070/1/jeko_523-4.pdf Mahirah Kamaludin, and Kuna Sandran, and A.A. Azlina, (2018) Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives. Jurnal Ekonomi Malaysia, 52 (3). pp. 41-53. ISSN 0127-1962 https://www.ukm.my/jem/issue/v52i3/
spellingShingle Mahirah Kamaludin,
Kuna Sandran,
A.A. Azlina,
Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives
title Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives
title_full Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives
title_fullStr Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives
title_full_unstemmed Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives
title_short Willingness to pay for improvements in water services in Terengganu, Malaysia : from domestic consumers’ perspectives
title_sort willingness to pay for improvements in water services in terengganu, malaysia : from domestic consumers’ perspectives
url http://journalarticle.ukm.my/20070/
http://journalarticle.ukm.my/20070/
http://journalarticle.ukm.my/20070/1/jeko_523-4.pdf