IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v66y2013i10p1750-1758.html
   My bibliography  Save this article

Estimating willingness-to-pay and financial feasibility in small water projects in El Salvador

Author

Listed:
  • Perez-Pineda, Felipe
  • Quintanilla-Armijo, Carlos

Abstract

The study here uses a non-market evaluation technique – the contingent valuation method – to estimate the economic value that people in four semi-rural communities in El Salvador place on improved water quality and sanitation. The findings suggest that access to potable water and sanitation was a high priority for people living in those communities. In addition, their high willingness-to-pay for these improved services supports the argument that medium-sized water supply projects in El Salvador could be profitable from the private perspective. The concept of maximum willingness-to-pay, well understood, can help policy makers in setting water charges in developing economies. This study shows that designing financially feasible projects that have a positive impact on the social conditions in poor communities is possible.

Suggested Citation

  • Perez-Pineda, Felipe & Quintanilla-Armijo, Carlos, 2013. "Estimating willingness-to-pay and financial feasibility in small water projects in El Salvador," Journal of Business Research, Elsevier, vol. 66(10), pages 1750-1758.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:1750-1758
    DOI: 10.1016/j.jbusres.2013.01.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296313000167
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2013.01.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Whittington, Dale & Lauria, Donald T. & Xinming Mu, 1989. "Paying for urban services : a study of water vending and willingness to pay for water in Onitsha, Nigeria," Policy Research Working Paper Series 363, The World Bank.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    3. Whittington, Dale & Briscoe, John & Mu, Xinming & Barron, William, 1990. "Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 293-311, January.
    4. Li, Binsheng, 1994. "The measurement of environmental and resource values: Theory and methods : A Myrick Freeman III Resources for the Future, Washington, DC, 1994, 515 pp," Resources Policy, Elsevier, vol. 20(4), pages 281-282, December.
    5. KyeongAe Choe & Dale Whittington & Donald T. Lauria, 1996. "The Economic Benefits of Surface Water Quality Improvements in Developing Countries: A Case Study of Davao, Philippines," Land Economics, University of Wisconsin Press, vol. 72(4), pages 519-537.
    6. Alexander A. McPhail, 1994. "Why Don't Households Connect to the Piped Water System? Observations from Tunis, Tunisia," Land Economics, University of Wisconsin Press, vol. 70(2), pages 189-196.
    7. Kazi Faisal Bin Seraj, 2008. "Willingness to Pay for Improved Sanitation Services and its Implication on Demand Responsive Approach of BRAC Water, Sanitation and Hygiene Programme," Working Papers id:1590, eSocialSciences.
    8. Briscoe, John, et al, 1990. "Toward Equitable and Sustainable Rural Water Supplies: A Contingent Valuation Study in Brazil," The World Bank Economic Review, World Bank, vol. 4(2), pages 115-134, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Van Houtven, George L. & Pattanayak, Subhrendu K. & Usmani, Faraz & Yang, Jui-Chen, 2017. "What are Households Willing to Pay for Improved Water Access? Results from a Meta-Analysis," Ecological Economics, Elsevier, vol. 136(C), pages 126-135.
    2. Simon Meunier & Dale T. Manning & Loic Queval & Judith A. Cherni & Philippe Dessante & Daniel Zimmerle, 2019. "Determinants of the marginal willingness to pay for improved domestic water and irrigation in partially electrified Rwandan villages," Post-Print hal-02179229, HAL.
    3. van Cranenburgh, Sander & Chorus, Caspar G., 2017. "Willingness to Pay-inference in the absence of rejected propositions," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 35-42.
    4. Llopis-Albert, Carlos & Palacios-Marques, Daniel & Soto-Acosta, Pedro, 2015. "Decision-making and stakeholders' constructive participation in environmental projects," Journal of Business Research, Elsevier, vol. 68(7), pages 1641-1644.
    5. Manning, Dale T. & Means, Peter & Zimmerle, Daniel & Galvin, Kathleen & Loomis, John & Paustian, Keith, 2015. "Using contingent behavior analysis to measure benefits from rural electrification in developing countries: an example from Rwanda," Energy Policy, Elsevier, vol. 86(C), pages 393-401.
    6. Helge Bormann & Jürgen Steinbrecher & Ingrid Althoff & Hubert Roth & Julian Baez & Carlos Frank & Mariana Gonzalez & Carlos Huenchuleo & Lisa Lugo & Ricardo Mata & Manuela M. Portela & José M. Reicher, 2016. "Recommendations for Capacity Development in Water Resources Engineering and Environmental Management in Latin America," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(10), pages 3409-3426, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John P. Hoehn & Douglas J. Krieger, 2000. "An Economic Analysis of Water and Wastewater Investments in Cairo, Egypt," Evaluation Review, , vol. 24(6), pages 579-608, December.
    2. Van Houtven, George L. & Pattanayak, Subhrendu K. & Usmani, Faraz & Yang, Jui-Chen, 2017. "What are Households Willing to Pay for Improved Water Access? Results from a Meta-Analysis," Ecological Economics, Elsevier, vol. 136(C), pages 126-135.
    3. 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.
    4. Michael Kaplowitz & Frank Lupi & Oscar Arreola, 2012. "Local Markets for Payments for Environmental Services: Can Small Rural Communities Self-Finance Watershed Protection?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(13), pages 3689-3704, October.
    5. Whittington, Dale, 1998. "Administering contingent valuation surveys in developing countries," World Development, Elsevier, vol. 26(1), pages 21-30, January.
    6. Ojeda, Monica Ilija & Mayer, Alex S. & Solomon, Barry D., 2008. "Economic valuation of environmental services sustained by water flows in the Yaqui River Delta," Ecological Economics, Elsevier, vol. 65(1), pages 155-166, March.
    7. Anthony Amoah & Peter G. Moffatt, 2021. "Willingness to pay for reliable piped water services: evidence from urban Ghana," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 805-829, October.
    8. Amandine Laré & Anne Briand & Eric Kéré, 2018. "Access to sanitation in precarious districts of Ouagadougou [L'accès à l'assainissement dans les quartiers précaires de Ouagadougou]," Post-Print hal-02430413, HAL.
    9. Deutschmann, Joshua W. & Postepska, Agnieszka & Sarr, Leopold, 2021. "Measuring willingness to pay for reliable electricity: Evidence from Senegal," World Development, Elsevier, vol. 138(C).
    10. Francisco Rosas & Santiago Acerenza & Peter F. Orazem, 2020. "Optimal pricing strategies for a cluster of goods: own- and cross-price effects with correlated tastes," Applied Economics, Taylor & Francis Journals, vol. 52(7), pages 742-755, February.
    11. Engel, Stefanie & Iskandarani, Maria & Useche, Maria del Pilar, 2005. "Improved water supply in the Ghanaian Volta Basin: who uses it and who participates in community decision-making?," EPTD discussion papers 129, International Food Policy Research Institute (IFPRI).
    12. Qiang Wang & Thomas Dogot & Guosheng Wu & Xianlei Huang & Changbin Yin, 2019. "Residents’ Willingness for Centralized Biogas Production in Hebei and Shandong Provinces," Sustainability, MDPI, vol. 11(24), pages 1-16, December.
    13. Webb, Patrick & Iskandarani, Maria, 1998. "Water Insecurity and the Poor: Issues and Research Needs," Discussion Papers 279785, University of Bonn, Center for Development Research (ZEF).
    14. Scarpa, Riccardo & Ruto, Eric S. K. & Kristjanson, Patti & Radeny, Maren & Drucker, Adam G. & Rege, John E. O., 2003. "Valuing indigenous cattle breeds in Kenya: an empirical comparison of stated and revealed preference value estimates," Ecological Economics, Elsevier, vol. 45(3), pages 409-426, July.
    15. Mvangeli Dlamini, Nqobizwe, 2015. "Households' Water Use Demand and Willingness to Pay for Improved Water Services: A Case Study of Semi-Urban Areas in the Lubombo and Lowveld Regions of Swaziland," Research Theses 243464, Collaborative Masters Program in Agricultural and Applied Economics.
    16. Whittington, Dale & Hanemann, W. Michael, 2006. "The Economic Costs and Benefits of Investments in Municipal Water and Sanitation Infrastructure: A Global Perspective," CUDARE Working Papers 7159, University of California, Berkeley, Department of Agricultural and Resource Economics.
    17. Fjona Zeneli, 2016. "Analysis of risks and investments� opportunities in water sector," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 13, pages 128-137, January.
    18. Solomon Tarfasa & Roy Brouwer, 2013. "Estimation of the public benefits of urban water supply improvements in Ethiopia: a choice experiment," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1099-1108, March.
    19. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    20. Abou-Ali, Hala & Carlsson, Fredrik, 2004. "Evaluating the welfare effects of improved water quality using the choice experiment method," Working Papers in Economics 131, University of Gothenburg, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:1750-1758. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.