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The Determinants of Water Connection and Water Consumption: Empirical Evidence from a Cambodian Household Survey

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  • Basani, Marcello
  • Isham, Jonathan
  • Reilly, Barry

Abstract

Summary Using cross-sectional household-level data from seven provincial towns and one district in Cambodia, we estimate both an access-to-water network equation and a water demand equation. We find that the connection elasticity with respect to the one-off initial connection fee is -0.39 and the price elasticity of water demand for the connected households lies in a range between -0.5 and -0.4. The policy implication of this research is that development practitioners should consider a connection (rather than a consumption) subsidy scheme, as it would stimulate increased access to clean water among all households, including the poorest.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 5 (May)
Pages: 953-968

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:5:p:953-968

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  1. Foster, Vivien & Gomez-Lobo, Andres & Halpern, Jonathan, 2000. "Designing direct subsidies for water and sanitation services - Panama : a case study," Policy Research Working Paper Series 2344, The World Bank.
  2. Hentschel, J. & Lanjouw, P., 1996. "Constructing an Indicator of Consumption for the Analysis of Poverty. Principles and Illustrations with Reference to Ecuador," Papers 127, World Bank - Living Standards Measurement.
  3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  4. Clarke, George R. G. & Menard, Claude & Maria Zuluaga, Ana, 2002. "Measuring the Welfare Effects of Reform: Urban Water Supply in Guinea," World Development, Elsevier, vol. 30(9), pages 1517-1537, September.
  5. Whitney K. Newey, 2009. "Two-step series estimation of sample selection models," Econometrics Journal, Royal Economic Society, vol. 12(s1), pages S217-S229, 01.
  6. Jasper M. Dalhuisen & Raymond J.G.M. Florax & Henri L.F.M. de Groot & Peter Nijkamp, 2001. "Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates differ," Tinbergen Institute Discussion Papers 01-057/3, Tinbergen Institute.
  7. Miguel Bacharach & William J. Vaughan, 1994. "Household Water Demand Estimation," IDB Publications 25218, Inter-American Development Bank.
  8. Chesher, Andrew & Irish, Margaret, 1987. "Residual analysis in the grouped and censored normal linear model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 33-61.
  9. Cristina C. David & Arlene B. Inocencio, 1998. "Understanding Household Demand for Water: The Metro Manila Case," EEPSEA Research Report rr1998012, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 1998.
  10. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer, vol. 38(1), pages 115-132, February.
  11. Mike Garn & Jonathan Isham & Satu Kahkonen, 2002. "Should we Bet on Private or Public Water Utilities in Cambodia? Evidence on Incentives and Performace from Seven Provincial Towns," Middlebury College Working Paper Series 0219, Middlebury College, Department of Economics.
  12. J.S. Cramer, 1998. "Predictive Performance of the Binary Logit Model in Unbalanced Samples," Tinbergen Institute Discussion Papers 98-085/4, Tinbergen Institute.
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Cited by:
  1. Sidibé, Amadou, 2010. "Demand for soil, water and forest conservation in Burkina Faso," Department of Forest Economics publications 2345, Swedish University of Agricultural Sciences, Department of forest economics.
  2. David R. Bell & Ronald C. Griffin, 2011. "Urban Water Demand with Periodic Error Correction," Land Economics, University of Wisconsin Press, vol. 87(3), pages 528-544.

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