Water Demand by Unconnected Urban Households in Rwanda

Abstract: In this paper, we analyze water demand by urban households in Rwanda who currently lack a piped connection into their home. The analysis uses data from a cross-sectional survey. The results show that public taps are the most widely used water source and that the demand for water from this source is more inelastic than that for water from other water sources. Although some households combine different sources of water, the majority in the sample uses only one source. We use the full household income, including the value of the household’s time, and obtain results which indicate income elasticities higher than those obtained using monetary income only. The full cost associated with alternative water sources (including the opportunity cost of the time used) is shown to be important for determining the choice of source — something which has been overlooked in most previous studies.