Consumer Willingness to Pay(WTP) for Kathmandu Water System

• In Event: Community and Urban Sociology Section Roundtables
  In Refereed Roundtable (60 minute): Table 13: Urban Services

Abstract

Urban water systems in disaster-prone cities face increasing financial and governance challenges due to climate-induced hazards, aging infrastructure, and persistent service failures. In Kathmandu Valley, long-standing water scarcity combined with post-disaster disruptions has intensified debates on tariff reform and cost recovery. This study examines household willingness to pay (WTP) for improved water services, conceptualizing WTP not only as an economic measure but also as an indicator of social trust, perceived state responsibility, and governance legitimacy.
An online survey was conducted with 170 households across Kathmandu Valley to assess public interest in increasing water tariffs and the conditions under which households are willing to contribute financially. The results show that 66% of respondents are willing to pay higher tariffs up to NPR 4,000 per month provided that both the quantity and quality of water services improve. This represents a substantial increase compared to the prevailing payment level, which remains below NPR 1,000. However, 34% of respondents expressed unwillingness to pay, driven primarily by distrust in government institutions rather than affordability concerns. Many respondents viewed water management as the sole responsibility of the government and expressed frustration over prolonged service deficiencies and weak accountability.
Beyond measuring WTP, the study explores household perceptions of water sources, disaster risks, and preferred policy responses, including infrastructure investment, urban–rural benefit-sharing mechanisms, technological interventions, and community-based solutions. The findings suggest that in disaster-affected and low-trust contexts, willingness to pay reflects institutional credibility more than consumer affordability. The study concludes that effective tariff reform must be preceded by improvements in service reliability, transparency, and public engagement to rebuild trust and support sustainable water governance.

Author

• Namita Poudel Bhurtel, Keio University