Abstract
This paper estimates the driving factors of household water demand management measures. There are several key factors behind household water managment measures were identified.
Using survey data of around 200 households from Hawassa, we identify the determinants of adoption of water using devices and water saving habits by estimating Probit/logit models of a household's probability to invest in water using devices and ordered probit models for the indexs of water savings habits at home respectively. The results indicate that the wealth effect proxy log income, respondents family size, and education level are strong predictors of adoption of water using devices.
Interms of the pricing variable, we find that households that are both metered and charged for their water use had less probability to invest in water using devices compared to households that paid a flat fee. Similarly, respondents family size, education level and enviornmental awareness are strong predictors of water savings habits at home.