Measuring Welfare Gains from Better Quality Infrastructure

34 Pages Posted: 20 Apr 2016

See all articles by Irina Klytchnikova

Irina Klytchnikova

World Bank

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Date Written: April 1, 2007

Abstract

Projects and reforms targeting infrastructure services can affect consumer welfare through changes in the price, coverage, or quality of the services provided. The benefits of improved service quality - while significant - are often overlooked because they are difficult to quantify. This paper reviews methods of evaluating the welfare implications of changes in the quality of infrastructure services within the broader theoretical perspective of welfare measurement. The study outlines the theoretical assumptions and data requirements involved, illustrating each method with examples that highlight common methodological features and differences. The paper also presents the theoretical underpinnings and potential applications of a new approach to analyzing the effects of interruptions in the supply of infrastructure services on household welfare.

Keywords: Energy Production and Transportation, Town Water Supply and Sanitation, Markets and Market Access, Economic Theory & Research, Water and Industry

Suggested Citation

Klytchnikova, Irina and Lokshin, Michael, Measuring Welfare Gains from Better Quality Infrastructure (April 1, 2007). World Bank Policy Research Working Paper No. 4217, Available at SSRN: https://ssrn.com/abstract=981825

Irina Klytchnikova

World Bank ( email )

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

Michael Lokshin (Contact Author)

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

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-1772 (Phone)
202-522-1153 (Fax)

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

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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