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The long-term economic impact of water quality: Evidence from rural drinking water program in China

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  • Liu, Yingjie
  • Tan, Ying
  • Zhang, Xun

Abstract

The provision of safe and clean drinking water is a key component of the United Nations Sustainable Development Goals. This paper examines the long-term economic benefit to rural residents in China from a major water treatment program started in the 1980s. By employing a data set covering almost three decades and utilizing Difference-in-Difference (DID) approach, we find that, on average, the program led to a 28.4 % increase in individual gross income. Residents with access to treated water in early life experienced significantly higher gains in income. Villages that are poorer and more remote also benefit more. Mechanically, the program has saved time spent on fetching water, spent more time on agricultural activities, improved health status, and alleviated the negative impacts of drought, through which it helps raise individual gross income.

Suggested Citation

  • Liu, Yingjie & Tan, Ying & Zhang, Xun, 2024. "The long-term economic impact of water quality: Evidence from rural drinking water program in China," Journal of Asian Economics, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:asieco:v:94:y:2024:i:c:s1049007824000915
    DOI: 10.1016/j.asieco.2024.101796
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    More about this item

    Keywords

    Water quality; Infrastructure program; Individual income; Long-term economic impact;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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