A AVALIAÇÃO CONTINGENTE E A ESTIMATIVA DA FUNÇÃO DE DEMANDA POR ÁGUA POTÁVEL

Abstract

This paper examines the determinants of willingness to pay for public services of water supply and estimates the demand for drinking water, through an application of the contingent valuation method. The hypothetical model of contingent valuation was compared with the usual model of users choices for public services of water supply, trying to estimate the probability of these consumers to accept such services at a given price structure. The value that consumers were willing to pay was also compared with the present price structure, praticed by water supply enterprises. Despite of a large lag existing between the optimal level of these public services and the level compatible with cost recovering of these water supply systems, this paper suggests that the price to be charged for water supply services should ensure a revenue flow necessary to guarantee not only the continuity but also an improvement of these public services to all users. Observing that users willingness to pay for water supply is lower than the price level to get public services of better quality, this paper concludes that a larger participation of public investments is unavoidble to improve and expand public water supply systems.