Affordability of water supply in Mongolia: Empirical lessons for measuring affordability
AbstractAffordability of water services is a pressing water policy issue for both the developed and in particular the developing world. Despite its well-known theoretical shortcomings affordability analysis for water supply is up to now widely based on the ratio of a household's water expenditure and income (CAR). However in the housing sector alternative concepts of measuring affordability have been developed among them the potential affordability approach (PAA) and the residual income approach (RIA). Against this background the article compares three prominent affordability measures (CAR, PAA, RIA) on the basis of an empirical case study of a ger i.e. low income area in the Mongolian city of Darkhan using household data from a survey conducted in 2009. Thus we gain insight into both the water-related affordability situation of people in Mongolia checking the World Bank's thesis of missing affordability problems in this country as well as the comparative functionality of different affordability measures. Additionally, institutional as well as access-driven problems of water supply are introduced into the analysis. It is shown that affordability problems quite occur for considerable parts of the households but have to be distinguished depending on the economic causation: We argue that none of the regarded measures gives a satisfyingly contoured notion of affordability properly distinguished from the adjacent problems of poverty and access. A mere CAR analysis does not provide sound recommendations for water policy at all. In particular, problems of access entailing non-pecuniary costs of water provision have to be taken into account and might explain both problems of underconsumption and given CAR-affordability at the same time. --
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 Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS) in its series UFZ Discussion Papers with number 9/2011.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: Permoserstraße 15, 04318 Leipzig
Phone: ++49 - 0341 - 235-2771
Fax: ++49 - 0341 - 235-2825
Web page: http://www.ufz.de/index.php?en=1445
More information through EDIRC
affordability; Mongolia; water supply; water access; potential affordability approach; residual income approach; non-pecuniary cost;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
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.:
- John W. Sawkins & Valerie A. Dickie, 2005. "Affordability of household water and sewerage services in Great Britain," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 225-244, June.
- Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2008.
"Distributional Effects of Price Reforms in the Italian Utility Markets,"
Institute for Fiscal Studies, vol. 29(1), pages 135-163, 03.
- Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2007. "Distributional effects of price reforms in the Italian utility markets," "Marco Fanno" Working Papers 0050, Dipartimento di Scienze Economiche "Marco Fanno".
- Salman M.A. Salman & Siobhán McInerney-Lankford, 2004. "The Human Right to Water : Legal and Policy Dimensions," World Bank Publications, The World Bank, number 14893, October.
- Anand, P.B., 2001. "Water 'Scarcity' in Chennai, India: Institutions, Entitlements and Aspects of Inequality in Access," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
- Andrew C. Worthington & Mark Hoffman, 2008. "An Empirical Survey Of Residential Water Demand Modelling," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 842-871, December.
- Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
- Donald L. Lerman & William J. Reeder, 1987. "The Affordability of Adequate Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 15(4), pages 389-404.
- Lee, Cassey, 2011. "Privatization, water access and affordability: Evidence from Malaysian household expenditure data," Economic Modelling, Elsevier, vol. 28(5), pages 2121-2128, September.
- Sorenson, Susan B. & Morssink, Christiaan & Campos, Paola Abril, 2011. "Safe access to safe water in low income countries: Water fetching in current times," Social Science & Medicine, Elsevier, vol. 72(9), pages 1522-1526, May.
- Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2008. "Measuring The Affordability Of Basic Public Utility Services In Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 67(2), pages 185-230, July.
- Fankhauser, Samuel & Tepic, Sladjana, 2007. "Can poor consumers pay for energy and water? An affordability analysis for transition countries," Energy Policy, Elsevier, vol. 35(2), pages 1038-1049, February.
- Kessides, Ioannis & Miniaci, Raffaele & Scarpa, Carlo & Valbonesi, Paola, 2009. "Toward defining and measuring the affordability of public utility services," Policy Research Working Paper Series 4915, The World Bank.
- REYNAUD Arnaud, 2006. "Assessing the impact of public regulation and private participation on water affordability for poor households: An empirical investigation of the French case," LERNA Working Papers 06.09.202, LERNA, University of Toulouse.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.