IDEAS home Printed from https://ideas.repec.org/a/sae/evarev/v24y2000i6p579-608.html
   My bibliography  Save this article

An Economic Analysis of Water and Wastewater Investments in Cairo, Egypt

Author

Listed:
  • John P. Hoehn

    (Michigan State University)

  • Douglas J. Krieger

    (Michigan State University)

Abstract

Nonmarket valuation methods have proved useful in planning and evaluating investments in water and wastewater infrastructure in developing countries. This study used contingent referendum methods to estimate household willingness to pay for each of four types of service improvements stemming from water and wastewater investments in Cairo, Egypt. An analysis of the net economic benefits of the investments concluded that benefits exceeded costs for all projects. Cost recovery was not assured with a fixed tariff. Willingness to pay for some households was less than the per household cost necessary for cost recovery. Cost recovery was also sensitive to whether tariffs were set for individual services or charged for a combined package of services.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:evarev:v:24:y:2000:i:6:p:579-608
    DOI: 10.1177/0193841X0002400602
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0193841X0002400602
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0193841X0002400602?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
    ---><---

    References listed on IDEAS

    as
    1. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    2. Bengt Kristrom, 1990. "A Non-Parametric Approach to the Estimation of Welfare Measures in Discrete Response Valuation Studies," Land Economics, University of Wisconsin Press, vol. 66(2), pages 135-139.
    3. Timothy C. Haab & Kenneth E. McConnell, 1998. "Referendum Models and Economic Values: Theoretical, Intuitive, and Practical Bounds on Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 74(2), pages 216-229.
    4. 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.
    5. 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.
    6. Whittington, Dale & Lauria, Donald T. & Mu, Xinming, 1991. "A study of water vending and willingness to pay for water in Onitsha, Nigeria," World Development, Elsevier, vol. 19(2-3), pages 179-198.
    7. Alberini Anna, 1995. "Optimal Designs for Discrete Choice Contingent Valuation Surveys: Single-Bound, Double-Bound, and Bivariate Models," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 287-306, May.
    8. 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.
    9. 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.
    10. Cosslett, Stephen R, 1983. "Distribution-Free Maximum Likelihood Estimator of the Binary Choice Model," Econometrica, Econometric Society, vol. 51(3), pages 765-782, May.
    11. Hoehn, John P. & Randall, Alan, 1987. "A satisfactory benefit cost indicator from contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 226-247, September.
    12. Whittington, Dale & Smith, V. Kerry & Okorafor, Apia & Okore, Augustine & Liu, Jin Long & McPhail, Alexander, 1992. "Giving respondents time to think in contingent valuation studies: A developing country application," Journal of Environmental Economics and Management, Elsevier, vol. 22(3), pages 205-225, 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. Sean Lyons & Joe O’Doherty & Richard Tol, 2010. "Determinants of Water Connection Type and Ownership of Water-Using Appliances in Ireland," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(12), pages 2853-2867, September.
    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. 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.
    4. Moreno-Sanchez, Rocio & Maldonado, Jorge Higinio & Wunder, Sven & Borda-Almanza, Carlos, 2012. "Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes," Ecological Economics, Elsevier, vol. 75(C), pages 126-134.

    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. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    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. Whittington, Dale, 1998. "Administering contingent valuation surveys in developing countries," World Development, Elsevier, vol. 26(1), pages 21-30, January.
    4. 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.
    5. Hanemann, W. Michael & Kanninen, Barbara, 1996. "The Statistical Analysis Of Discrete-Response Cv Data," CUDARE Working Papers 25022, University of California, Berkeley, Department of Agricultural and Resource Economics.
    6. 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.
    7. Tuan, Tran Huu & Navrud, Stale, 2009. "Applying the dissonance-minimising format to value cultural heritage in developing countries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-17.
    8. Kamuanga, Mulumba & Swallow, Brent M. & Sigue, Hamade & Bauer, Burkhard, 2001. "Evaluating contingent and actual contributions to a local public good: Tsetse control in the Yale agro-pastoral zone, Burkina Faso," Ecological Economics, Elsevier, vol. 39(1), pages 115-130, October.
    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. Ukwueze Ezebuilo & Ogujiuba Kanayo & Adenuga Adeniyi, 2005. "How Useful Is Contingent Valuation Of The Environment To Water Services? Evidence From South East, Nigeria," Econometrics 0512012, University Library of Munich, Germany.
    11. Sutton, William R. & Larson, Douglas M. & Jarvis, Lovell S., 2002. "A New Approach To Contingent Valuation For Assessing The Costs Of Living With Wildlife In Developing Countries," 2002 Annual meeting, July 28-31, Long Beach, CA 19848, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Marcial Echenique & Raghavendra Seshagiri, 2009. "Attribute-Based Willingness to Pay for Improved Water Services: A Developing Country Application," Environment and Planning B, , vol. 36(3), pages 384-397, June.
    13. Kerr, Geoffrey N., 2000. "Dichotomous choice contingent valuation probability distributions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-20.
    14. 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.
    15. Moreno-Sanchez, Rocio & Maldonado, Jorge Higinio & Wunder, Sven & Borda-Almanza, Carlos, 2012. "Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes," Ecological Economics, Elsevier, vol. 75(C), pages 126-134.
    16. Anna Alberini, 2004. "Robustness of VSL Values from Contingent Valuation Surveys," Working Papers 2004.135, Fondazione Eni Enrico Mattei.
    17. 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).
    18. Julien Milanesi, 2010. "Measuring demand for sanitation in developing countries: A new theoretical and methodological framework for contingent valuation surveys," Post-Print hal-00633288, HAL.
    19. 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.
    20. 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).

    More about this item

    Statistics

    Access and download statistics

    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:sae:evarev:v:24:y:2000:i:6:p:579-608. 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: SAGE Publications (email available below). General contact details of provider: .

    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.