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The Determinants of Water Connection and Water Consumption: Empirical Evidence from a Cambodian Household Survey

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  • Basani, Marcello
  • Isham, Jonathan
  • Reilly, Barry

Abstract

Summary Using cross-sectional household-level data from seven provincial towns and one district in Cambodia, we estimate both an access-to-water network equation and a water demand equation. We find that the connection elasticity with respect to the one-off initial connection fee is -0.39 and the price elasticity of water demand for the connected households lies in a range between -0.5 and -0.4. The policy implication of this research is that development practitioners should consider a connection (rather than a consumption) subsidy scheme, as it would stimulate increased access to clean water among all households, including the poorest.

Suggested Citation

  • Basani, Marcello & Isham, Jonathan & Reilly, Barry, 2008. "The Determinants of Water Connection and Water Consumption: Empirical Evidence from a Cambodian Household Survey," World Development, Elsevier, vol. 36(5), pages 953-968, May.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:5:p:953-968
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    3. Tomas Havranek & Zuzana Irsova & Tomas Vlach, 2018. "Measuring the Income Elasticity of Water Demand: The Importance of Publication and Endogeneity Biases," Land Economics, University of Wisconsin Press, vol. 94(2), pages 259-283.
    4. Cook, Joseph & Wagner, Jake & Newell, Gunnar, 2020. "A Decision Support Tool for Rural Water Supply Planning," EfD Discussion Paper 20-6, Environment for Development, University of Gothenburg.
    5. Jake Wagner & Joseph Cook & Peter Kimuyu, 2019. "Household Demand for Water in Rural Kenya," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1563-1584, December.
    6. David R. Bell & Ronald C. Griffin, 2011. "Urban Water Demand with Periodic Error Correction," Land Economics, University of Wisconsin Press, vol. 87(3), pages 528-544.
    7. Nunoo, Jacob & Koomson, Isaac & Orkoh, Emmanuel, 2015. "Household Deficiency in Demand for Water: Do Water Source and Travel Time Matter?," MPRA Paper 66007, University Library of Munich, Germany.
    8. Stéphanie Dos Santos & Thomas LeGrand, 2013. "Is the Tap Locked? An Event History Analysis of Piped Water Access in Ouagadougou, Burkina Faso," Urban Studies, Urban Studies Journal Limited, vol. 50(6), pages 1292-1310, May.
    9. Bich-Ngoc, Nguyen & Prevedello, Cédric & Cools, Mario & Teller, Jacques, 2022. "Factors influencing residential water consumption in Wallonia, Belgium," Utilities Policy, Elsevier, vol. 74(C).
    10. Liu, Yang & Luan, Lin & Wu, Weilong & Zhang, Zhiqiang & Hsu, Yen, 2021. "Can digital financial inclusion promote China's economic growth?," International Review of Financial Analysis, Elsevier, vol. 78(C).
    11. Onjala, Joseph & Ndiritu, Simon Wagura & Stage, Jesper, 2013. "Risk Perception, Choice of Drinking Water, and Water Treatment: Evidence from Kenyan Towns," RFF Working Paper Series dp-13-10-efd, Resources for the Future.
    12. Moritz A. Drupp & Ulrike Kornek & Jasper N. Meya & Lutz Sager, 2024. "The Economics of Inequality and the Environment," CESifo Working Paper Series 11036, CESifo.

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