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Welfare Effects of Access to Water Service in Cambodia

Author

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  • Theara Horn

    (Graduate School of Economics, Osaka University)

Abstract

From data collected by questionnaire survey of three communes in the Kandal province of Cambodia, where public water supply remains inaccessible, this study estimates the demand function for drinking water and finds that the price elasticity is between -0.26 and -0.29. Based on this, and given the price set by the Phnom Penh Water Supply Authority, expansion of service would increase per capita water consumption by 9.8 liters per day, increase consumer surplus by 4.6 percent of total expenditure and decrease the number of households surviving on less than 30 liters of water per day by 5.3 percent. A simulation is used to calculate the water price such that the benefit of water connection exceeds the cost.

Suggested Citation

  • Theara Horn, 2011. "Welfare Effects of Access to Water Service in Cambodia," Discussion Papers in Economics and Business 11-08, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1108
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1108.pdf
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    Cited by:

    1. Havranek, Tomas & Irsova, Zuzana & Vlach, Tomas, 2016. "Publication Bias in Measuring the Income Elasticity of Water Demand," MPRA Paper 75247, University Library of Munich, Germany.
    2. Tomas Havranek & Zuzana Irsova & Tomas Vlach, 2018. "Measuring the Income Elasticity of Water Demand: The Importance of Publication and Endogeneity Biases," Land Economics, University of Wisconsin Press, vol. 94(2), pages 259-283.

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    Keywords

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    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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