The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka

The authors show how willingness to pay surveys can be used to gauge household demand for improved network water and sanitation services. They do this by presenting a case-study from Sri Lanka, where they surveyed approximately 1,800 households in 2003. Using multivariate regression, they show that...

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Main Authors:	Pattanayak, Subhrendu K., van den Berg, Caroline, Yang, Jui-Chen, Van Houtven, George
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ALTERNATIVE WATER ALTERNATIVE WATER SUPPLY BILLING CAPITA CONSUMPTION CASE STUDY CONNECTED HOUSEHOLDS CONNECTION CONNECTION CHARGE CONNECTION COST CONNECTION COSTS CONNECTION FEES CONNECTIONS CONSUMER SURPLUS CONSUMERS CONSUMPTION CHARGE CONTINGENT VALUATION CUBIC METER CUBIC METERS DECISION MAKING DEGREES OF FREEDOM DEMAND FOR WATER DEVELOPMENT ECONOMICS DICHOTOMOUS CHOICE DISTURBANCE TERM DRAINAGE ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC VALUE ECONOMICS EMPIRICAL EVIDENCE ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL PROBLEM ENVIRONMENTAL QUALITY FINANCIAL INCENTIVES FINANCIAL RESOURCES FINANCIAL VIABILITY GOOD QUALITY WATER GOVERNMENT POLICIES HEALTH CONSEQUENCES HOUSEHOLD DEMAND HOUSEHOLDS INCOME LITERS OF WATER MONTHLY BILL MONTHLY BILLS MONTHLY CHARGE NATIONAL WATER NATIONAL WATER SUPPLY NATURAL RESOURCE ECONOMICS POLICY INSTRUMENTS POOR HOUSEHOLDS POVERTY MEASURE POVERTY STATUS PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE SECTOR OPERATORS PRIVATE WELLS PROVISION OF WATER PROVISION OF WATER SUPPLY PROVISION OF WATER SUPPLY SERVICES QUALITY WATER SAFE WATER SANITATION SANITATION SERVICES SERVICE DELIVERY SERVICE IMPROVEMENT SERVICE IMPROVEMENTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SERVICE QUALITY SEWERAGE SEWERAGE SERVICES SIMULATIONS STATISTICAL SIGNIFICANCE TARIFF STRUCTURE TOWN TOWNS USER CHARGES WATER CONNECTION WATER COVERAGE WATER DEPARTMENT WATER POLLUTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SOURCE WATER SOURCES WATER SUPPLY WATER SUPPLY SERVICE WATER USE WATER UTILITIES WELLS WILLINGNESS TO PAY WTP
Online Access:	http://documents.worldbank.org/curated/en/2006/01/6530300/use-willingness-pay-experiments-estimating-demand-piped-water-connections-sri-lanka http://hdl.handle.net/10986/8798

id	okr-10986-8798
recordtype	oai_dc
spelling	okr-10986-87982021-04-23T14:02:40Z The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka Pattanayak, Subhrendu K. van den Berg, Caroline Yang, Jui-Chen Van Houtven, George ALTERNATIVE WATER ALTERNATIVE WATER SUPPLY BILLING CAPITA CONSUMPTION CASE STUDY CONNECTED HOUSEHOLDS CONNECTION CONNECTION CHARGE CONNECTION COST CONNECTION COSTS CONNECTION FEES CONNECTIONS CONSUMER SURPLUS CONSUMERS CONSUMPTION CHARGE CONTINGENT VALUATION CUBIC METER CUBIC METERS DECISION MAKING DEGREES OF FREEDOM DEMAND FOR WATER DEVELOPMENT ECONOMICS DICHOTOMOUS CHOICE DISTURBANCE TERM DRAINAGE ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC VALUE ECONOMICS EMPIRICAL EVIDENCE ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL PROBLEM ENVIRONMENTAL QUALITY FINANCIAL INCENTIVES FINANCIAL RESOURCES FINANCIAL VIABILITY GOOD QUALITY WATER GOVERNMENT POLICIES HEALTH CONSEQUENCES HOUSEHOLD DEMAND HOUSEHOLDS INCOME LITERS OF WATER MONTHLY BILL MONTHLY BILLS MONTHLY CHARGE NATIONAL WATER NATIONAL WATER SUPPLY NATURAL RESOURCE ECONOMICS POLICY INSTRUMENTS POOR HOUSEHOLDS POVERTY MEASURE POVERTY STATUS PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE SECTOR OPERATORS PRIVATE WELLS PROVISION OF WATER PROVISION OF WATER SUPPLY PROVISION OF WATER SUPPLY SERVICES QUALITY WATER SAFE WATER SANITATION SANITATION SERVICES SERVICE DELIVERY SERVICE IMPROVEMENT SERVICE IMPROVEMENTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SERVICE QUALITY SEWERAGE SEWERAGE SERVICES SIMULATIONS STATISTICAL SIGNIFICANCE TARIFF STRUCTURE TOWN TOWNS USER CHARGES WATER CONNECTION WATER COVERAGE WATER DEPARTMENT WATER POLLUTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SOURCE WATER SOURCES WATER SUPPLY WATER SUPPLY SERVICE WATER USE WATER UTILITIES WELLS WILLINGNESS TO PAY WTP The authors show how willingness to pay surveys can be used to gauge household demand for improved network water and sanitation services. They do this by presenting a case-study from Sri Lanka, where they surveyed approximately 1,800 households in 2003. Using multivariate regression, they show that a complex combination of factors drives demand for service improvements. While poverty and costs are found to be key determinants of demand, the authors also find that location, self-provision, and perceptions matter as well, and that subsets of these factors matter differently for subsamples of the population. To evaluate the policy implications of the demand analysis, they use the model to estimate uptake rates of improved service under various scenarios-demand in subgroups, the institutional decision to rely on private sector provision, and various financial incentives targeted to the poor. The simulations show that in this particular environment in Sri Lanka, demand for piped water services is low, and that it is unlikely that under the present circumstances the goal of nearly universal piped water coverage is going to be achieved. Policy instruments, such as subsidization of connection fees, could be used to increase demand for piped water, but it is unclear whether the benefits of the use of such policies would outweigh the costs. 2012-06-22T16:36:53Z 2012-06-22T16:36:53Z 2006-01 http://documents.worldbank.org/curated/en/2006/01/6530300/use-willingness-pay-experiments-estimating-demand-piped-water-connections-sri-lanka http://hdl.handle.net/10986/8798 English Policy Research Working Paper; No. 3818 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Sri Lanka
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ALTERNATIVE WATER ALTERNATIVE WATER SUPPLY BILLING CAPITA CONSUMPTION CASE STUDY CONNECTED HOUSEHOLDS CONNECTION CONNECTION CHARGE CONNECTION COST CONNECTION COSTS CONNECTION FEES CONNECTIONS CONSUMER SURPLUS CONSUMERS CONSUMPTION CHARGE CONTINGENT VALUATION CUBIC METER CUBIC METERS DECISION MAKING DEGREES OF FREEDOM DEMAND FOR WATER DEVELOPMENT ECONOMICS DICHOTOMOUS CHOICE DISTURBANCE TERM DRAINAGE ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC VALUE ECONOMICS EMPIRICAL EVIDENCE ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL PROBLEM ENVIRONMENTAL QUALITY FINANCIAL INCENTIVES FINANCIAL RESOURCES FINANCIAL VIABILITY GOOD QUALITY WATER GOVERNMENT POLICIES HEALTH CONSEQUENCES HOUSEHOLD DEMAND HOUSEHOLDS INCOME LITERS OF WATER MONTHLY BILL MONTHLY BILLS MONTHLY CHARGE NATIONAL WATER NATIONAL WATER SUPPLY NATURAL RESOURCE ECONOMICS POLICY INSTRUMENTS POOR HOUSEHOLDS POVERTY MEASURE POVERTY STATUS PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE SECTOR OPERATORS PRIVATE WELLS PROVISION OF WATER PROVISION OF WATER SUPPLY PROVISION OF WATER SUPPLY SERVICES QUALITY WATER SAFE WATER SANITATION SANITATION SERVICES SERVICE DELIVERY SERVICE IMPROVEMENT SERVICE IMPROVEMENTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SERVICE QUALITY SEWERAGE SEWERAGE SERVICES SIMULATIONS STATISTICAL SIGNIFICANCE TARIFF STRUCTURE TOWN TOWNS USER CHARGES WATER CONNECTION WATER COVERAGE WATER DEPARTMENT WATER POLLUTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SOURCE WATER SOURCES WATER SUPPLY WATER SUPPLY SERVICE WATER USE WATER UTILITIES WELLS WILLINGNESS TO PAY WTP
spellingShingle	ALTERNATIVE WATER ALTERNATIVE WATER SUPPLY BILLING CAPITA CONSUMPTION CASE STUDY CONNECTED HOUSEHOLDS CONNECTION CONNECTION CHARGE CONNECTION COST CONNECTION COSTS CONNECTION FEES CONNECTIONS CONSUMER SURPLUS CONSUMERS CONSUMPTION CHARGE CONTINGENT VALUATION CUBIC METER CUBIC METERS DECISION MAKING DEGREES OF FREEDOM DEMAND FOR WATER DEVELOPMENT ECONOMICS DICHOTOMOUS CHOICE DISTURBANCE TERM DRAINAGE ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC VALUE ECONOMICS EMPIRICAL EVIDENCE ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL PROBLEM ENVIRONMENTAL QUALITY FINANCIAL INCENTIVES FINANCIAL RESOURCES FINANCIAL VIABILITY GOOD QUALITY WATER GOVERNMENT POLICIES HEALTH CONSEQUENCES HOUSEHOLD DEMAND HOUSEHOLDS INCOME LITERS OF WATER MONTHLY BILL MONTHLY BILLS MONTHLY CHARGE NATIONAL WATER NATIONAL WATER SUPPLY NATURAL RESOURCE ECONOMICS POLICY INSTRUMENTS POOR HOUSEHOLDS POVERTY MEASURE POVERTY STATUS PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE SECTOR OPERATORS PRIVATE WELLS PROVISION OF WATER PROVISION OF WATER SUPPLY PROVISION OF WATER SUPPLY SERVICES QUALITY WATER SAFE WATER SANITATION SANITATION SERVICES SERVICE DELIVERY SERVICE IMPROVEMENT SERVICE IMPROVEMENTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SERVICE QUALITY SEWERAGE SEWERAGE SERVICES SIMULATIONS STATISTICAL SIGNIFICANCE TARIFF STRUCTURE TOWN TOWNS USER CHARGES WATER CONNECTION WATER COVERAGE WATER DEPARTMENT WATER POLLUTION WATER QUALITY WATER SECTOR WATER SECTOR REFORM WATER SERVICE WATER SERVICES WATER SOURCE WATER SOURCES WATER SUPPLY WATER SUPPLY SERVICE WATER USE WATER UTILITIES WELLS WILLINGNESS TO PAY WTP Pattanayak, Subhrendu K. van den Berg, Caroline Yang, Jui-Chen Van Houtven, George The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka
geographic_facet	South Asia Sri Lanka
relation	Policy Research Working Paper; No. 3818
description	The authors show how willingness to pay surveys can be used to gauge household demand for improved network water and sanitation services. They do this by presenting a case-study from Sri Lanka, where they surveyed approximately 1,800 households in 2003. Using multivariate regression, they show that a complex combination of factors drives demand for service improvements. While poverty and costs are found to be key determinants of demand, the authors also find that location, self-provision, and perceptions matter as well, and that subsets of these factors matter differently for subsamples of the population. To evaluate the policy implications of the demand analysis, they use the model to estimate uptake rates of improved service under various scenarios-demand in subgroups, the institutional decision to rely on private sector provision, and various financial incentives targeted to the poor. The simulations show that in this particular environment in Sri Lanka, demand for piped water services is low, and that it is unlikely that under the present circumstances the goal of nearly universal piped water coverage is going to be achieved. Policy instruments, such as subsidization of connection fees, could be used to increase demand for piped water, but it is unclear whether the benefits of the use of such policies would outweigh the costs.
format	Publications & Research :: Policy Research Working Paper
author	Pattanayak, Subhrendu K. van den Berg, Caroline Yang, Jui-Chen Van Houtven, George
author_facet	Pattanayak, Subhrendu K. van den Berg, Caroline Yang, Jui-Chen Van Houtven, George
author_sort	Pattanayak, Subhrendu K.
title	The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka
title_short	The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka
title_full	The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka
title_fullStr	The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka
title_full_unstemmed	The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka
title_sort	use of willingness to pay experiments : estimating demand for piped water connections in sri lanka
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/01/6530300/use-willingness-pay-experiments-estimating-demand-piped-water-connections-sri-lanka http://hdl.handle.net/10986/8798
_version_	1764405702176014336

The Use of Willingness to Pay Experiments : Estimating Demand for Piped Water Connections in Sri Lanka

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