Valuing Access to Water - A Spatial Hedonic Approach Applied to Indian Cities

31 Pages Posted: 20 Apr 2016

See all articles by Luc Anselin

Luc Anselin

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Nancy Lozano-Gracia

affiliation not provided to SSRN

Uwe Deichmann

World Bank - Development Research Group (DECRG)

Somik V. Lall

World Bank

Date Written: February 1, 2008

Abstract

An important infrastructure policy issue for rapidly growing cities in developing countries is how to raise fiscal revenues to finance basic services in a fair and efficient manner. This paper applies hedonic analysis that explicitly accounts for spatial spillovers to derive the value of improved access to water in the Indian cities of Bhopal and Bangalore. The findings suggest that by looking at individual or private benefits only, the analysis may underestimate the overall social welfare from investing in service supply especially among the poorest residents. The paper further demonstrates how policy simulations based on these estimates help prioritize spatial targeting of interventions according to efficiency and equity criteria.

Keywords: Town Water Supply and Sanitation, Housing &Human Habitats, Water Supply and Sanitation Governance and Institutions, Water and Industry, Water Use

Suggested Citation

Anselin, Luc and Lozano-Gracia, Nancy and Deichmann, Uwe and Lall, Somik V., Valuing Access to Water - A Spatial Hedonic Approach Applied to Indian Cities (February 1, 2008). World Bank Policy Research Working Paper No. 4533, Available at SSRN: https://ssrn.com/abstract=1100348

Luc Anselin

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
326 Mumford Hall
Urbana, IL 61801
United States

Nancy Lozano-Gracia

affiliation not provided to SSRN

Uwe Deichmann

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Somik V. Lall (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/slall

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