Household’s Valuation of Domestic Water in Indonesia: Revisiting the Supply Driven Approach
We apply the hedonic analysis on a nation-wide microeconomic dataset of Indonesia. Our results indicate that in urban areas, people value having improved domestic water sources (piped and pump water), while this is not true for households in rural areas. Moreover, households in both urban and rural areas do not seem to value communal water sources, probably reflecting the effects of the free-rider problem, when services have characteristics of public goods. On the whole, our results show that households in rural Indonesia are not willing to pay for improved domestic water sources, which pinpoints a major challenge to the DDA approach. Assuming universal rights for provision of safe and improved water quantities that cover basic needs, subsidization of water provision is still called for.
|Date of creation:||2004|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Trawick, Paul, 2003. "Against the Privatization of Water: An Indigenous Model for Improving Existing Laws and Successfully Governing the Commons," World Development, Elsevier, vol. 31(6), pages 977-996, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:41911. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.