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Does piped water improve the welfare of poor households?

Author

Listed:
  • Dian Rarassanti
  • Alin Halimatussadiah
  • Fithra Faisal Hastiadi
  • Pyan Putro S. A. Muchtar

Abstract

The use of improved water sources could affect households? welfare in the form of better health quality. The number of households that have access to piped water, an acknowledged type of improved drinking water sources, is very low in Indonesia due to low investment in water infrastructure. For poor households, access to piped water is essential as the ability to pay for other kinds of clean water is weak. This study aims to examine the impact of the use of piped water on households? welfare by looking at the difference between the welfare score of households that are connected to piped water and that of those who are not. The two groups are selected using Propensity Score Matching (PSM) method. The study employs Central Bureau of Statistics household survey data in South Tangerang City, Banten Province. The result shows that the welfare of piped water consumers is significantly higher than the non-consumers. To expand the program, we recommend that the government should put more effort to make drinking water with pipeline distribution system more accessible to poor households by subsidizing them.

Suggested Citation

  • Dian Rarassanti & Alin Halimatussadiah & Fithra Faisal Hastiadi & Pyan Putro S. A. Muchtar, 2016. "Does piped water improve the welfare of poor households?," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(3), pages 119-134.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2016-003010
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    References listed on IDEAS

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    1. Arianto A. Patunru, 2015. "Access to Safe Drinking Water and Sanitation in Indonesia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(2), pages 234-244, May.
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    5. Florencia Devoto & Esther Duflo & Pascaline Dupas & William Parienté & Vincent Pons, 2012. "Happiness on Tap: Piped Water Adoption in Urban Morocco," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 68-99, November.
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    7. Steven Buck & Maximilian Auffhammer & Stephen Hamilton & David Sunding, 2016. "Measuring Welfare Losses from Urban Water Supply Disruptions," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(3), pages 743-778.
    8. Tsukada, Rachel & Hailu, Degol, 2016. "The impact of piped water supply on household welfare," MERIT Working Papers 2016-046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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