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A significant proportion of slum residents offer vital services that arerelied upon by wealthier urban residents. However, the lack of access to cleandrinking water and adequate sanitation facilities causes considerable healthrisks for slum residents, leading to interruption in services and potentialtransmission of diseases to the beneficiaries. This study explores thewillingness of the households benefitting from these services to contributefinancially towards the measures that can mitigate the negative externalitiesof the diseases resulting from poor water and sanitation in slums. This studyadopts the Contingent Valuation Method using face-to-face interviews with 260service-receiving households in Chittagong City Corporation of Bangladesh.Estimating the logistic regression model, the findings indicate that 74 percentof respondents express their willingness to contribute financially towards animprovement of water and sanitation facilities in the slums. Within this group,16 percent are willing to pay 1.88 USD/month, 18 percent prefer 3.86 USD/year,and 40 percent are willing to contribute a lump sum of 3.92 USD. The empiricalfindings suggest a significant influence of gender, college, and housemaidsworking hours in the households on respondents willingness to pay. For example,female respondents with a college degree and households with longer workinghours of housemaids are more likely to contribute towards the improvement ofthe water and sanitation facilities in slums. Though the findings arestatistically significant at a 5% level across different estimated models, theregression model exhibits a low goodness of fit.

Willingness to Pay to Prevent Water and Sanitation-Related Diseases  Suffered by Slum Dwellers and Beneficiary Households: Evidence from  Chittagong, Bangladesh