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Awareness and the demand for environmental quality: Drinking water in urban India

  • Jyotsna Jalan

    ()

    (Indian Statistical Institute, New Delhi)

  • E.Somanathan

    ()

    (Indian Statistical Institute, New Delhi)

  • Saraswata Chaudhuri

    (Indian Statistical Institute, New Delhi)

The demand for environmental quality is often presumed to be low in developingcountries due to poverty. Less attention has been paid to the possibility that lack of awareness about the adverse health effects of environmental pollution could also keep the demand low. We use a household survey from urban India to estimate the effects of awareness and wealth on home water purification. Average costs of different home purification methods are used to derive get estimates of lower bounds on willingness to pay for better drinking water water quality in Delhi. We find that measures of awareness such as schooling and exposure to mass media have statistically significant effects on adoption of different home purification methods and therefore, on willingness to pay. These effects are similar in magnitude to the wealth effects.

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File URL: http://www.isid.ac.in/~pu/dispapers/dp03-05.pdf
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Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 03-05.

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Length: 33 pages
Date of creation: Sep 2003
Date of revision:
Handle: RePEc:ind:isipdp:03-05
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  1. Bryan J. Hubbell & Jeffrey L. Jordan, 2000. "Joint Production and Averting Expenditure Measures of Willingness to Pay: Do Water Expenditures Really Measure Avoidance Costs?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 427-437.
  2. Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-27, December.
  3. Alberini, Anna & Eskeland, Gunnar S. & Krupnick, Alan & McGranahan, Gordon, 1996. "Determinants of diarrheal disease in Jakarta," Policy Research Working Paper Series 1568, The World Bank.
  4. Jalan, Jyotsna & Ravallion, Martin, 2003. "Does piped water reduce diarrhea for children in rural India?," Journal of Econometrics, Elsevier, vol. 112(1), pages 153-173, January.
  5. Brooks, Nancy & Sethi, Rajiv, 1997. "The Distribution of Pollution: Community Characteristics and Exposure to Air Toxics," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 233-250, February.
  6. Larson, Bruce A. & Gnedenko, Ekaterina D., 1999. "Avoiding health risks from drinking water in Moscow: An empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 4(04), pages 565-581, October.
  7. Boyce, James K. & Klemer, Andrew R. & Templet, Paul H. & Willis, Cleve E., 1999. "Power distribution, the environment, and public health: A state-level analysis," Ecological Economics, Elsevier, vol. 29(1), pages 127-140, April.
  8. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
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