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The Value of Clean Water: Experimental Evidence from Rural India

Author

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  • Fiona Burlig
  • Amir Jina
  • Anant Sudarshan

Abstract

Over 2 billion people lack clean drinking water. Existing solutions face high costs (piped water) or low demand (point-of-use chlorine). Using a 60,000 household cluster-randomized experiment we test an increasingly popular alternative: decentralized treatment and home delivery of clean water to the rural poor. At low prices, take-up exceeds 90 percent, sustained throughout the experiment. High prices reduce take-up but are privately profitable. Self-reported health measures improve. We experimentally recover revealed-preference measures of valuation. Willingness-to-pay is several times higher than prior indirect estimates; willingness-to-accept is larger and exceeds marginal cost. On a cost-per-disability-adjusted-life-year basis, free water delivery regimes appear highly cost-effective.

Suggested Citation

  • Fiona Burlig & Amir Jina & Anant Sudarshan, 2025. "The Value of Clean Water: Experimental Evidence from Rural India," NBER Working Papers 33557, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33557
    Note: DEV EEE
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    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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