IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1152.html
   My bibliography  Save this paper

Household preferences and governance of water services: A hedonic analysis from rural Guatemala

Author

Listed:
  • Vásquez, William F.

Abstract

This paper estimates hedonic models of rental prices to investigate household preferences regarding water services in rural Guatemala. Estimated values for water services are compared across municipal, private, and community-managed water utilities. Findings indicate that rural households value municipal water services but are indifferent between not having piped water and being connected to a private system. Moreover, the estimated value of community-managed services is negative, which suggests that rural households have an aversion to services managed at the community level. It is argued that the value households assign to water services reflects institutional costs imposed by the forms of service governance here analyzed.

Suggested Citation

  • Vásquez, William F., 2011. "Household preferences and governance of water services: A hedonic analysis from rural Guatemala," IFPRI discussion papers 1152, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1152
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01152.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ballestero, Maureen & Brown, Ernesto & Jouravlev, Andrei & Küffner, Ulrich & Zegarra Méndez, Eduardo, 2005. "Administración del agua en América Latina: situación actual y perspectivas," Recursos Naturales e Infraestructura 90, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Ekin Birol & Katia Karousakis & Phoebe Koundouri, 2006. "Using economic valuation techniques to inform water resources management: A survey and critical appraisal of available techniques and an application," DEOS Working Papers 0607, Athens University of Economics and Business.
    3. Junaid Ahmad & Shantayanan Devarajan & Stuti Khemani & Shekhar Shah, 2006. "Decentralization and Service Delivery," Chapters, in: Ehtisham Ahmad & Giorgio Brosio (ed.), Handbook of Fiscal Federalism, chapter 10, Edward Elgar Publishing.
    4. Isham, Jonathan & Kahkonen, Satu, 2002. "Institutional Determinants of the Impact of Community-Based Water Services: Evidence from Sri Lanka and India," Economic Development and Cultural Change, University of Chicago Press, vol. 50(3), pages 667-691, April.
    5. Fredrik Carlsson & Peter Frykblom & Carl Lagerkvist, 2007. "Preferences with and without prices - does the price attribute affect behavior in stated preference surveys?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(2), pages 155-164, October.
    6. Partha Deb & Pravin K. Trivedi, 2006. "Specification and simulated likelihood estimation of a non-normal treatment-outcome model with selection: Application to health care utilization," Econometrics Journal, Royal Economic Society, vol. 9(2), pages 307-331, July.
    7. David Martimort & Stephane Straub, 2006. "Privatization and Changes in Corruption Patterns: The Roots of Public Discontent," Edinburgh School of Economics Discussion Paper Series 147, Edinburgh School of Economics, University of Edinburgh.
    8. Céline Nauges & Dale Whittington, 2010. "Estimation of Water Demand in Developing Countries: An Overview," The World Bank Research Observer, World Bank, vol. 25(2), pages 263-294, August.
    9. Martimort, David & Straub, Stéphane, 2009. "Infrastructure privatization and changes in corruption patterns: The roots of public discontent," Journal of Development Economics, Elsevier, vol. 90(1), pages 69-84, September.
    10. Baisa, Brian & Davis, Lucas W. & Salant, Stephen W. & Wilcox, William, 2010. "The welfare costs of unreliable water service," Journal of Development Economics, Elsevier, vol. 92(1), pages 1-12, May.
    11. Sebastian Eckardt, 2007. "Political Accountability, Fiscal Conditions, and Local Government Performance – Cross-Sectional Evidence from Indonesia," Working Papers 02-2007, Institute of Local Public Finance.
    12. Nauges, Cã‰Line & Strand, Jon & Walker, Ian, 2009. "The value of water connections in Central American cities: a revealed preference study," Environment and Development Economics, Cambridge University Press, vol. 14(3), pages 349-370, June.
    13. Yusuf, Arief Anshory & Koundouri, Phoebe, 2005. "Willingness to pay for water and location bias in hedonic price analysis: evidence from the Indonesian housing market," Environment and Development Economics, Cambridge University Press, vol. 10(6), pages 821-836, December.
    14. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
    15. Christian von Luebke, 2009. "The political economy of local governance: findings from an Indonesian field study," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(2), pages 201-230.
    16. Lentini, Emilio, 2010. "Servicios de agua potable y saneamiento en Guatemala: beneficios potenciales y determinantes de éxito," Documentos de Proyectos 3787, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    17. Anwandter, Lars & Ozuna, Teofilo Jr., 2002. "Can public sector reforms improve the efficiency of public water utilities?," Environment and Development Economics, Cambridge University Press, vol. 7(4), pages 687-700, October.
    18. Anand Asthana, 2003. "Decentralisation and Supply Efficiency: The case of Rural Water Supply in Central India," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 148-159.
    19. Maria Garcia-Valiñas, 2007. "What level of decentralization is better in an environmental context? An application to water policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(2), pages 213-229, October.
    20. Naren Prasad, 2006. "Privatisation Results: Private Sector Participation in Water Services After 15 Years," Development Policy Review, Overseas Development Institute, vol. 24(6), pages 669-692, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William Vásquez & Dina Franceschi, 2013. "System Reliability and Water Service Decentralization: Investigating Household Preferences in Nicaragua," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(14), pages 4913-4926, November.
    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. Johanna CHOUMERT & Jesper STAGE & Claudine UWERA, 2014. "Access to water as a determinant of rental values: A hedonic analysis in Rwanda," Working Papers 201401, CERDI.
    4. Leslie Richardson & John B. Loomis & Patricia A. Champ, 2013. "Valuing Morbidity from Wildfire Smoke Exposure: A Comparison of Revealed and Stated Preference Techniques," Land Economics, University of Wisconsin Press, vol. 89(1), pages 76-100.
    5. Djiby Racine Thiam & Ariel Dinar & Hebert Ntuli, 2021. "Promotion of residential water conservation measures in South Africa: the role of water-saving equipment," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 173-210, January.
    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. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    8. Stephane Straub, 2008. "Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges," Edinburgh School of Economics Discussion Paper Series 179, Edinburgh School of Economics, University of Edinburgh.
    9. Antonio Estache & Liam Wren-Lewis, 2009. "Toward a Theory of Regulation for Developing Countries: Following Jean-Jacques Laffont's Lead," Journal of Economic Literature, American Economic Association, vol. 47(3), pages 729-770, September.
    10. Fiona Gibson & Michael Burton, 2014. "Salt or Sludge? Exploring Preferences for Potable Water Sources," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(3), pages 453-476, March.
    11. 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.
    12. Mbuvi, Dorcas & Tarsim, Achraf, 2011. "Managerial ownership and urban water utilities efficiency in Uganda," MERIT Working Papers 2011-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Berg, Sanford V. & Jiang, Liangliang & Lin, Chen, 2012. "Regulation and corporate corruption: New evidence from the telecom sector," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 22-43.
    14. Ahtiainen, Heini & Pouta, Eija & Zawadzki, Wojciech & Tienhaara, Annika, 2023. "Cost vector effects in discrete choice experiments with positive status quo cost," Journal of choice modelling, Elsevier, vol. 47(C).
    15. van Zanten, Boris T. & Koetse, Mark J. & Verburg, Peter H., 2016. "Economic valuation at all cost? The role of the price attribute in a landscape preference study," Ecosystem Services, Elsevier, vol. 22(PB), pages 289-296.
    16. Batsirai Majuru & Marc Suhrcke & Paul R. Hunter, 2016. "How Do Households Respond to Unreliable Water Supplies? A Systematic Review," IJERPH, MDPI, vol. 13(12), pages 1-20, December.
    17. Dionissi Aliprantis, 2014. "What Is the Equity-Efficiency Tradeoff when Maintaining Wells in Rural Haiti?," Working Papers (Old Series) 1424, Federal Reserve Bank of Cleveland.
    18. de la Higuera-Molina, Emilio José & Campos-Alba, Cristina María & López-Pérez, Germán & Zafra-Gómez, José Luis, 2023. "Efficiency of water service management alternatives in Spain considering environmental factors," Utilities Policy, Elsevier, vol. 84(C).
    19. Morten Mørkbak & Tove Christensen & Dorte Gyrd-Hansen, 2010. "Choke Price Bias in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 537-551, April.
    20. Sylvia CESAR, 2019. "Privatization Of Water: Evaluating Its Performance In The Developing World," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 5-23, March.

    More about this item

    Keywords

    hedonic analysis; household preferences; service governance; Water;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.