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

Studies of pipe water demand in developing countries have traditionall y analyzed household connection decisions to the pipe water system. On the other hand, empirical observations have revealed that often, afte r connecting, households do not use their pipe water supply, or augmen t it with alternative sources. Due to deficiencies in pipe water quali ty, pressure, or availability, households invest in coping strategies in the form of alternative supplies and storage facilities. Because th ese strategies have important economic implications, there is a need t o develop an understanding of households' water demand that goes beyon d connection decisions. This paper presents a model system of househol d water supply choices. The system accounts for the fact that househol ds may use different supply systems for different uses of water. Moreo ver, the relation between households' choices of water supply and thei r connection decisions is explicitly modeled. The approach is illustra ted using data from Faisalabad, Pakistan.