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An Economic Analysis of Water and Wastewater Investments in Cairo, Egypt

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  • John P. Hoehn

    (Michigan State University)

  • Douglas J. Krieger

    (Michigan State University)

Abstract

Nonmarket valuation methods have proved useful in planning and evaluating investments in water and wastewater infrastructure in developing countries. This study used contingent referendum methods to estimate household willingness to pay for each of four types of service improvements stemming from water and wastewater investments in Cairo, Egypt. An analysis of the net economic benefits of the investments concluded that benefits exceeded costs for all projects. Cost recovery was not assured with a fixed tariff. Willingness to pay for some households was less than the per household cost necessary for cost recovery. Cost recovery was also sensitive to whether tariffs were set for individual services or charged for a combined package of services.

Suggested Citation

  • John P. Hoehn & Douglas J. Krieger, 2000. "An Economic Analysis of Water and Wastewater Investments in Cairo, Egypt," Evaluation Review, , vol. 24(6), pages 579-608, December.
    • Handle: RePEc:sae:evarev:v:24:y:2000:i:6:p:579-608
    DOI: 10.1177/0193841X0002400602
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    Cited by:

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    2. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    3. 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.
    4. Moreno-Sanchez, Rocio & Maldonado, Jorge Higinio & Wunder, Sven & Borda-Almanza, Carlos, 2012. "Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes," Ecological Economics, Elsevier, vol. 75(C), pages 126-134.

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