Measuring welfare gains from better quality infrastructure
AbstractProjects and reforms targeting infrastructure services can affect consumer welfare through changes in the price, coverage, or quality of the services provided. The benefits of improved service quality-while significant-are often overlooked because they are difficult to quantify. This paper reviews methods of evaluating the welfare implications of changes in the quality of infrastructure services within the broader theoretical perspective of welfare measurement. The study outlines the theoretical assumptions and data requirements involved, illustrating each method with examples that highlight common methodological features and differences. The paper also presents the theoretical underpinnings and potential applications of a new approach to analyzing the effects of interruptions in the supply of infrastructure services on household welfare.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4217.
Date of creation: 01 Apr 2007
Date of revision:
Energy Production and Transportation; Town Water Supply and Sanitation; Markets and Market Access; Economic Theory&Research; Water and Industry;
Other versions of this item:
- Irina Klytchnikova & Michael Lokshin, 2009. "Measuring Welfare Gains from Better Quality Infrastructure," Journal of Infrastructure Development, India Development Foundation, vol. 1(2), pages 87-109, December.
- JEL - Labor and Demographic Economics - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-28 (All new papers)
- NEP-DEV-2007-04-28 (Development)
- NEP-HAP-2007-04-28 (Economics of Happiness)
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