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Valuing access to water - a spatial hedonic approach applied to Indian cities

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  • Anselin, Luc
  • Lozano-Gracia, Nancy
  • Deichmann, Uwe
  • Lall, Somik

Abstract

An important infrastructure policy issue for rapidly growing cities in developing countries is how to raise fiscal revenues to finance basic services in a fair and efficient manner. This paper applies hedonic analysis that explicitly accounts for spatial spillovers to derive the value of improved access to water in the Indian cities of Bhopal and Bangalore. The findings suggest that by looking at individual or private benefits only, the analysis may underestimate the overall social welfare from investing in service supply especially among the poorest residents. The paper further demonstrates how policy simulations based on these estimates help prioritize spatial targeting of interventions according to efficiency and equity criteria.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4533.

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Date of creation: 01 Feb 2008
Date of revision:
Handle: RePEc:wbk:wbrwps:4533

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Related research

Keywords: Town Water Supply and Sanitation; Housing&Human Habitats; Water Supply and Sanitation Governance and Institutions; Water and Industry; Water Use;

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Cited by:
  1. Johanna CHOUMERT & Eric Nazindigouba KERE & Amandine Loyale LARĂ©, 2014. "The impact of water and sanitation access on housing values: The case of Dapaong, Togo," Working Papers 201403, CERDI.
  2. Stefania Tonin & Margherita Turvani, 2011. "Environmental contamination and industrial real estate market: an application of hedonic price method in Italy," ERSA conference papers ersa10p511, European Regional Science Association.

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