Spring Cleaning: Rural Water Impacts, Valuation and Property Rights Institutions
AbstractIn many societies, social norms create common property rights in natural resources, limiting incentives for private investment. This paper uses a randomized evaluation in Kenya to measure the health impacts of investments to improve source water quality through spring protection, estimate the value that households place on spring protection, and simulate the welfare impacts of alternative water property rights norms and institutions, including common property, freehold private property, and alternative “Lockean” property rights norms. We find that infrastructure investments reduce fecal contamination by 66% at naturally occurring springs, cutting child diarrhea by one quarter. While households increase their use of protected springs, travel-cost based revealed preference estimates of households’ valuations are only one-half stated preference valuations and are much smaller than levels implied by health planners’ typical valuations of child mortality, consistent with models in which the demand for health is highly income elastic. Simulations suggest that, at current income levels, private property norms would generate little additional investment while imposing large static costs due to spring owners’ local market power, but that private property norms might function better than common property at higher income levels. Alternative institutions, such as “modified Lockean” property rights, government investment or vouchers for improved water, could yield higher social welfare.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15280.
Date of creation: Aug 2009
Date of revision:
Note: CH EEE HE PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Michael Kremer & Jessica Leino & Edward Miguel & Alix Peterson Zwane, 2011. "Spring Cleaning: Rural Water Impacts, Valuation, and Property Rights Institutions," The Quarterly Journal of Economics, Oxford University Press, vol. 126(1), pages 145-205.
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-22 (All new papers)
- NEP-MIC-2009-08-22 (Microeconomics)
- NEP-REG-2009-08-22 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:pri:rpdevs:1121 is not listed on IDEAS
- Trudy Ann Cameron, 1992. "Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods," Land Economics, University of Wisconsin Press, vol. 68(3), pages 302-317.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2000.
"The Colonial Origins of Comparative Development: An Empirical Investigation,"
NBER Working Papers
7771, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
- Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, vol. 75(1), pages 128-38, March.
- Guido M. Imbens & Jeffrey M. Wooldridge, 2008.
"Recent Developments in the Econometrics of Program Evaluation,"
NBER Working Papers
14251, National Bureau of Economic Research, Inc.
- Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
- Imbens, Guido W. & Wooldridge, Jeffrey M., 2008. "Recent Developments in the Econometrics of Program Evaluation," IZA Discussion Papers 3640, Institute for the Study of Labor (IZA).
- Guido Imbens & Jeffrey Wooldridge, 2008. "Recent developments in the econometrics of program evaluation," CeMMAP working papers CWP24/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Madajewicz, Malgosia & Pfaff, Alexander & van Geen, Alexander & Graziano, Joseph & Hussein, Iftikhar & Momotaj, Hasina & Sylvi, Roksana & Ahsan, Habibul, 2007. "Can information alone change behavior? Response to arsenic contamination of groundwater in Bangladesh," Journal of Development Economics, Elsevier, vol. 84(2), pages 731-754, November.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
- Richard T. Carson & Nicholas E. Flores & Kerry M. Martin & Jennifer L. Wright, 1996.
"Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods,"
University of Wisconsin Press, vol. 72(1), pages 80-99.
- Carson, Richard T. & Flores, Nicholas E. & Martin, Kerry M. & Wright, Jennifer L., 1995. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148793, Australian Agricultural and Resource Economics Society.
- Miriam Bruhn & David McKenzie, 2009.
"In Pursuit of Balance: Randomization in Practice in Development Field Experiments,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 1(4), pages 200-232, October.
- Bruhn, Miriam & McKenzie, David, 2008. "In pursuit of balance : randomization in practice in development field experiments," Policy Research Working Paper Series 4752, The World Bank.
- Sarah Gavian & Marcel Fafchamps, 1996. "Land Tenure and Allocative Efficiency in Niger," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 460-471.
- John R. McKean & Donn M. Johnson & Richard G. Walsh, 1995. "Valuing Time in Travel Cost Demand Analysis: An Empirical Investigation," Land Economics, University of Wisconsin Press, vol. 71(1), pages 96-105.
- Kenneth I. Wolpin & Petra E. Todd, 2006. "Assessing the Impact of a School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility," American Economic Review, American Economic Association, vol. 96(5), pages 1384-1417, December.
- Markus Goldstein & Christopher Udry, 2005.
"The Profits of Power: Land Rights and Agricultural Investment in Ghana,"
929, Economic Growth Center, Yale University.
- Markus Goldstein & Christopher Udry, 2008. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 981-1022, December.
- John Whitehead, 2006. "A comparison of contingent valuation method and random utility model estimates of the value of avoiding reductions in king mackerel bag limits," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1725-1735.
- Allen, Robert C, 1982. "The Efficiency and Distributional Consequences of Eighteenth Century Enclosures," Economic Journal, Royal Economic Society, vol. 92(368), pages 937-53, December.
- Michael Hoy & Emmanuel Jimenez, 2006. "Property Rights and the Urban Environment: Local Public Goods in Indonesian Cities," Working Papers 0609, University of Guelph, Department of Economics and Finance.
- R. Hirschowitz, 1989. "The Other Path: The Invisible Revolution in the Third World," South African Journal of Economics, Economic Society of South Africa, vol. 57(4), pages 266-272, December.
- Whittington, Dale & Mu, Xinming & Roche, Robert, 1990. "Calculating the value of time spent collecting water: Some estimates for Ukunda, Kenya," World Development, Elsevier, vol. 18(2), pages 269-280, February.
- Fernando Borraz & Nicolás Gonzalez Pampillón & Marcelo Olarreaga, 2011.
"Water nationalization: network access, quality, and health outcomes,"
Documentos de Trabajo (working papers)
1811, Department of Economics - dECON.
- Fernando Borraz & Nicolas Gonzalez Pampillon & Marcelo Olarreaga, 2011. "Water Nationalization: network access, quality, and health outcomes," Research Papers by the Department of Economics, University of Geneva 11051, Département des Sciences Économiques, Université de Genève.
- Borraz, Fernando & González, Nicolás & Olarreaga, Marcelo, 2011. "Water Nationalization: network access, water quality, and health outcomes," CEPR Discussion Papers 8415, C.E.P.R. Discussion Papers.
- Dionissi Aliprantis, 2011. "Community-Based Well Maintenance in Rural Haiti," OVE Working Papers 0611, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
- Shanti Gamper-Rabindran & Shakeeb Khan & Christopher Timmins, 2008. "The Impact of Piped Water Provision on Infant Mortality in Brazil: A Quantile Panel Data Approach," NBER Working Papers 14365, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.