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

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  • Vásquez, William F.
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    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.

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    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01152.pdf
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    Bibliographic Info

    Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1152.

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    Date of creation: 2011
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    Handle: RePEc:fpr:ifprid:1152

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    Keywords: hedonic analysis; household preferences; service governance; Water;

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    1. Maria Garcia-Valiñas, 2007. "What level of decentralization is better in an environmental context? An application to water policies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(2), pages 213-229, October.
    2. Baisa, Brian & Davis, Lucas & Salant, Stephen W. & Wilcox, William, 2008. "The Welfare Costs of Unreliable Water Service," MPRA Paper 9812, University Library of Munich, Germany.
    3. NAUGES Céline & WHITTINGTON Dale, 2008. "Estimation of Water Demand in Developing Countries: An Overview," LERNA Working Papers 08.20.264, LERNA, University of Toulouse.
    4. 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.
    5. Jonathan Isham & Satu Kahkonen, 2002. "Institutional Determinants of the Impact Community-Based Water Services: Evidence from Sri Lanka and India," Middlebury College Working Paper Series 0220, Middlebury College, Department of Economics.
    6. NAUGES Céline & STRAND Jon, 2006. "The Value of Water Connections in Central American Cities: A Revealed Preference Study," LERNA Working Papers 06.23.216, LERNA, University of Toulouse.
    7. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl-Johan, 2004. "Preferences With and Without Prices - does the price attribute affect behavior in stated preference surveys?," Working Papers in Economics 150, University of Gothenburg, Department of Economics.
    8. 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(04), pages 687-700, October.
    9. Ahmad, Junaid & Devarajan, Shantayanan & Khemani, Stuti & Shah, Shekhar, 2005. "Decentralization and service delivery," Policy Research Working Paper Series 3603, The World Bank.
    10. 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(06), pages 821-836, December.
    11. David Martimort & Stephane Straub, 2006. "Privatization and Changes in Corruption Patterns: The Roots of Public Discontent," ESE Discussion Papers 147, Edinburgh School of Economics, University of Edinburgh.
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