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

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  • Caroline Berg
  • Céline Nauges

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. Copyright The Author(s) 2012

Suggested Citation

  • Caroline Berg & Céline Nauges, 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, Springer, vol. 5(3), pages 151-166, October.
    • Handle: RePEc:spr:lsprsc:v:5:y:2012:i:3:p:151-166
    DOI: 10.1007/s12076-012-0079-y
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    References listed on IDEAS

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    Cited by:

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    2. Choumert, Johanna & Stage, Jesper & Uwera, Claudine, 2014. "Access to water as determinant of rental values: A housing hedonic analysis in Rwanda," Journal of Housing Economics, Elsevier, vol. 26(C), pages 48-54.
    3. Sheillah Simiyu & Mark Swilling & Richard Rheingans & Sandy Cairncross, 2017. "Estimating the Cost and Payment for Sanitation in the Informal Settlements of Kisumu, Kenya: A Cross Sectional Study," IJERPH, MDPI, vol. 14(1), pages 1-16, January.
    4. Ngawang Dendup & Kuenzang Tshering, 2018. "Demand for piped drinking water and a formal sewer system in Bhutan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 681-703, July.
    5. William F. Vásquez & Laura Beaudin, 2020. "On the use of hypothetical price data to estimate hedonic models in a developing country context," Letters in Spatial and Resource Sciences, Springer, vol. 13(3), pages 219-231, December.
    6. Leiva, Benjamin & Van Houtven, George & Vásquez, William F. & Nájera, Andrea, 2023. "Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala," Utilities Policy, Elsevier, vol. 82(C).
    7. Anthony Amoah & Peter G. Moffatt, 2017. "Estimating demand for reliable piped-water services in urban Ghana: An application of competing valuation approaches," University of East Anglia School of Economics Working Paper Series 2017-01, School of Economics, University of East Anglia, Norwich, UK..
    8. Eric Nazindigouba KERE & Johanna CHOUMERT & Amandine Loyal LARÉ-DONDARINI, 2014. "The impact of water and sanitation access on housing values: The case of Dapaong, Togo," Working Papers 201403, CERDI.
    9. Joshi, Janak & Ali, Mohammad & Berrens, Robert P., 2017. "Valuing farm access to irrigation in Nepal: A hedonic pricing model," Agricultural Water Management, Elsevier, vol. 181(C), pages 35-46.
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    More about this item

    Keywords

    Household behavior; Piped water services; Hedonic pricing method; Development planning and policy; Sri Lanka; D12; H4; O2; Q25; Q52;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H4 - Public Economics - - Publicly Provided Goods
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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