A MODEL OF HOUSEHOLD CHOICE OF WATER-SUPPLY SYSTEMS IN DEVELOPING-COUNTRIES

Studies of pipe water demand in developing countries have traditionally analyzed household connection decisions to the pipe water system. On the other hand, empirical observations have revealed that often, after connecting, households do not use their pipe water supply, or augment it with alternative sources. Due to deficiencies in pipe water quality, pressure, or availability, households invest in coping strategies in the form of alternative supplies and storage facilities. Because these strategies have important economic implications, there is a need to develop an understanding of households' water demand that goes beyond connection decisions. This paper presents a model system of household water supply choices. The system accounts for the fact that households may use different supply systems for different uses of water. Moreover, the relation between households' choices of water supply and their connection decisions is explicitly modeled. The approach is illustrated using data from Faisalabad, Pakistan.