Extra-economic issues in willingness to pay for water in Kuwait

Abstract

Kuwait lies in an arid zone of the world, and must manufacture nearly all of its water through desalination. Nevertheless, the government heavily subsidizes water so that water prices are among the lowest in the world, and per capita consumption is among the highest in the world. Recent declines in oil prices have made it clear that Kuwait cannot continue expansion of water production indefinitely; it must start reducing water consumption. In-depth interviews show that poorly implemented programs could generate substantial resistance. Carefully implemented plans should be able to contribute to reduced consumption. There is substantially willingness to pay for tap water with fair policies, supported by an effective communications campaign.