A Research Report Submitted in Partial Fulfillment of the Requirement for Award of the Degree of Bachelor of Science in Economics (Economic Policy and Planning) (Bsc. Econ - EPP) of Mzumbe University 2020.This study investigated households willingness to pay for replacing charcoal with gas in Dar es Salaam, with the following specific objectives; factors influencing households' willingness to pay for replacing charcoal with natural or liquefied petroleum gas in Dar es Salaam Tanzania, To access the households willingness to pay for gas in the study area and To examine the extent of households convenience satisfaction for gas in the area of study. Cross-sectional data from sixty (60) were selected with the use of the simple random technique was employed and three areas were chosen which are Mikocheni, Ubungo and Tabata and data were collected. The study employed a questionnaire, interview and Contingent Valuation Method to elicit willingness to pay for gas. The Descriptive and inferential statistics were used hence probit was used alongside with STATA. The findings showed 71.9% of the households were willing to pay for gas with a mean of TZS 428070.2 per month. Probit model which was employed to evaluate household willingness to pay for gas. Probit regression results showed that gender, household size, marital status, age, satisfaction, income and level of education were explaining the variation in the willingness to pay for gas. The majority of respondents' interest was invested in paying for this service which means they are ready to use this service; therefore, the government should supply natural gas in the areas possible and Liquefied Petroleum Gas. Households must be involved from the first stage to reduce the problem of air pollution by using charcoal and developing good social welfare.