The willingness to pay for access to piped water: A hedonic analysis of house prices in Southwest Sri Lanka

Van Den Berg, Caroline and Nauges, Céline (2012) The willingness to pay for access to piped water: A hedonic analysis of house prices in Southwest Sri Lanka. Letters in Spatial and Resource Sciences, 5 (3). pp. 151-166.

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Official URL: http://tse-fr.eu/pub/28894

Abstract

We apply a hedonic house price analysis to value connection to the piped water network in Southwest Sri Lanka based on a household survey that was conducted in 2003-04. We find that the willingness-to-pay for a piped water connection is on average about 5 percent of monthly household expenditure, which is at the lower end of the range from estimates obtained in case studies in other developing countries. In addition, the willingness-to-pay for piped water decreases as a proportion of income when income goes up. An important policy conclusion is that connection to the piped water system should be considered in relation to the availability and quality of alternative water sources. If alternative sources with good water quality are available, the need for a piped water connection is less urgent.

Item Type: Article
Language: English
Date: October 2012
Refereed: Yes
Uncontrolled Keywords: Household behavior, Piped water services, Hedonic pricing method, Development planning and policy, Sri Lanka
JEL codes: D12 - Consumer Economics - Empirical Analysis
H4 - Publicly Provided Goods
O2 - Development Planning and Policy
Q25 - Water
Q52 - Pollution Control Adoption Costs; Distributional Effects; Employment Effects
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 16 Mar 2015 14:54
Last Modified: 07 Mar 2018 13:23
OAI ID: oai:tse-fr.eu:28894
URI: http://publications.ut-capitole.fr/id/eprint/16663

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