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Estimating willingness-to-pay and financial feasibility in small water projects in El Salvador

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  • Perez-Pineda, Felipe
  • Quintanilla-Armijo, Carlos

Abstract

The study here uses a non-market evaluation technique – the contingent valuation method – to estimate the economic value that people in four semi-rural communities in El Salvador place on improved water quality and sanitation. The findings suggest that access to potable water and sanitation was a high priority for people living in those communities. In addition, their high willingness-to-pay for these improved services supports the argument that medium-sized water supply projects in El Salvador could be profitable from the private perspective. The concept of maximum willingness-to-pay, well understood, can help policy makers in setting water charges in developing economies. This study shows that designing financially feasible projects that have a positive impact on the social conditions in poor communities is possible.

Suggested Citation

  • Perez-Pineda, Felipe & Quintanilla-Armijo, Carlos, 2013. "Estimating willingness-to-pay and financial feasibility in small water projects in El Salvador," Journal of Business Research, Elsevier, vol. 66(10), pages 1750-1758.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:1750-1758
    DOI: 10.1016/j.jbusres.2013.01.014
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    References listed on IDEAS

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    Cited by:

    1. Van Houtven, George L. & Pattanayak, Subhrendu K. & Usmani, Faraz & Yang, Jui-Chen, 2017. "What are Households Willing to Pay for Improved Water Access? Results from a Meta-Analysis," Ecological Economics, Elsevier, vol. 136(C), pages 126-135.
    2. Simon Meunier & Dale T. Manning & Loic Queval & Judith A. Cherni & Philippe Dessante & Daniel Zimmerle, 2019. "Determinants of the marginal willingness to pay for improved domestic water and irrigation in partially electrified Rwandan villages," Post-Print hal-02179229, HAL.
    3. van Cranenburgh, Sander & Chorus, Caspar G., 2017. "Willingness to Pay-inference in the absence of rejected propositions," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 35-42.
    4. Llopis-Albert, Carlos & Palacios-Marques, Daniel & Soto-Acosta, Pedro, 2015. "Decision-making and stakeholders' constructive participation in environmental projects," Journal of Business Research, Elsevier, vol. 68(7), pages 1641-1644.
    5. Manning, Dale T. & Means, Peter & Zimmerle, Daniel & Galvin, Kathleen & Loomis, John & Paustian, Keith, 2015. "Using contingent behavior analysis to measure benefits from rural electrification in developing countries: an example from Rwanda," Energy Policy, Elsevier, vol. 86(C), pages 393-401.
    6. Helge Bormann & Jürgen Steinbrecher & Ingrid Althoff & Hubert Roth & Julian Baez & Carlos Frank & Mariana Gonzalez & Carlos Huenchuleo & Lisa Lugo & Ricardo Mata & Manuela M. Portela & José M. Reicher, 2016. "Recommendations for Capacity Development in Water Resources Engineering and Environmental Management in Latin America," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(10), pages 3409-3426, August.

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