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Unpackaging demand for water service quality : evidence from conjoint surveys in Sri Lanka

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Author Info
Yang, Jui-Chen
Pattanayak, Subhrendu K.
Jonson, F. Reed
Mansfield, Carol
van den Berg, Caroline
Jones, Kelly

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Abstract

In the early 2000s, the Government of Sri Lanka considered engaging private sector operators to manage water and sewerage services in two separate service areas: one in the town of Negombo (north of Colombo), and one stretching along the coastal strip (south from Colombo) from the towns of Kalutara to Galle. Since then, the government has abandoned the idea of setting up a public-private partnership in these two areas. This paper is part of a series of investigations to determine how these pilot private sector transactions (forming part of the overall water sector reform strategy) could be designed in such a manner that they would benefit the poor. The authors describe the results of a conjoint survey evaluating the factors that drive customer demand for alternative water supply and sanitation services in Sri Lanka. They show how conjoint surveys can be used to unpackage household demand for attributes of urban services and improve the design of infrastructure policies. They present conjoint surveys as a tool for field experiments and a source of valuable empirical data. In the study of three coastal towns in southwestern Sri Lanka the conjoint survey allows the authors to compare household preferences for four water supply attributes-price, quantity, safety, and reliability. They examine subpopulations of different income levels to determine if demand is heterogeneous. The case study suggests that households care about service quality (not just price). In general, the authors find that households have diverse preferences in terms of quantity, safety, and service options, but not with regard to hours of supply. In particular, they find that the poor have lower ability to trade off income for services, a finding that has significant equity implications in terms of allocating scarce public services and achieving universal water access.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3817.

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Date of creation: 01 Jan 2006
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Handle: RePEc:wbk:wbrwps:3817

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Related research
Keywords: Town Water Supply and Sanitation; Water and Industry; Economic Theory&Research; Water Use; Water Supply and Sanitation Governance and Institutions;

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  1. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July. [Downloadable!] (restricted)
  2. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November. [Downloadable!] (restricted)
  3. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December. [Downloadable!] (restricted)
  4. Daniel McFadden, 1976. "The Revealed Preferences of a Government Bureaucracy: Empirical Evidence," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 55-72, Spring. [Downloadable!] (restricted)
  5. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470. [Downloadable!]
  6. David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December. [Downloadable!] (restricted)
  7. repec:wbp:wbpubs:9780821350393 is not listed on IDEAS
  8. Edward R. Morey & Vijaya R. Sharma & Anders Karlstrom, 2003. "A Simple Method of Incorporating Income Effects into Logit and Nested-Logit Models: Theory and Application," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(1), pages 248-253, 02. [Downloadable!] (restricted)
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