EFFECTIVENESS OF PRICING POLICY IN HOUSEHOLDS’ WATER DEMAND MANAGEMENT IN KADUNA STATE: A CASE STUDY OF SABONGARI LOCAL GOVERNMENT AREA.
EFFECTIVENESS OF PRICING POLICY IN HOUSEHOLDS’ WATER DEMAND MANAGEMENT IN KADUNA STATE: A CASE STUDY OF SABONGARI LOCAL GOVERNMENT AREA.
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Date
2012-11
Authors
UBANGIDA, SHUAIBU
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Abstract
The effectiveness of water supply policies used in the past is nowadays questionable since the
gap between water supply and water demand is increasing despite increase in water supply.
With increasing demand for water primarily as a result of increase in population, urbanization
and economic growth, attention was shifted from supply management to demand management
policies. Water Demand Management aims at minimizing wastage of water and ensuring
efficient water use through pricing and non-pricing policies. In spite of the importance of water
supply for domestic, industrial, agricultural and other uses and in spite also of the intensifying
scarcity of water, empirical researches on water demand and effectiveness of water demand
management tools are very rare in developing countries like Nigeria. The States and National
governments have introduced policies aimed at reducing the gap between water supply and
water demand but the situation has not shown any improvement. This study attempted empirical
analysis of the effectiveness of pricing policy in households’ water demand management in
Kaduna State using Sabon Gari Local Government as a case study. Various pricing policies
were reviewed and according to the theory of price determination of both economic and public
goods, efficient pricing policy encourages efficient use of water. By the use of primary source of
data collection, through administration of questionnaires to water users and staff of the Water
Boards, it was revealed that the current pricing policy of the State does not lead to water use
efficiency nor does it cover operation and maintenance costs, a situation that led to a serious
shortage of funds for proper operation of the water supply institution. The study also found
variations in quantity of water used among households based on their income levels and
households’ size. The study therefore, concluded that the current pricing policy is inefficient.
Consumers of the public water supply service indicated willingness to pay for improved service
contingent upon increase in water tariff. However, the problems of water supply sector in
Kaduna State are not only with the pricing policy but also with poor condition of service and
weak policy implementation to mention just a few. This study recommends that review of the
pricing policy and other policies should be carried out to address the problems of the water
sector. The review should take into consideration demand assessment on the heterogeneous
category of the water users by adopting a user focused approach
Description
BEING A THESIS SUBMITTED TO THE DEPARTMENT OF ECONOMICS,
AHMADU BELLO UNIVERSITY ZARIA, IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE (M.SC) DEGREE IN
ECONOMICS.
NOVEMBER, 2012
Keywords
EFFECTIVENESS,, PRICING POLICY,, HOUSEHOLDS’ WATER DEMAND,, MANAGEMENT,, KADUNA STATE,, CASE STUDY,, SABONGARI LOCAL,, GOVERNMENT AREA.