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Measuring Welfare Gains from Better Quality Infrastructure

Author

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  • Irina Klytchnikova

    (The World Bank, iklytchnikova@worldbank.org)

  • Michael Lokshin

    (The World Bank, mlokshin@worldbank.org)

Abstract

Projects and reforms targeting infrastructure services can affect consumer welfare through changes in the price, coverage, or quality of the services provided. The benefits of improved service quality—while significant—are often overlooked because they are difficult to quantify. This article reviews methods of evaluating the welfare implications of changes in the quality of infrastructure services within the broader theoretical perspective of welfare measurement. The study outlines the theoretical assumptions and data requirements involved, illustrating each method with examples that highlight common methodological features and differences. The article also presents the theoretical underpinnings and potential applications of a new approach to analysing the effects of interruptions in the supply of infrastructure services on household welfare.

Suggested Citation

  • Irina Klytchnikova & Michael Lokshin, 2009. "Measuring Welfare Gains from Better Quality Infrastructure," Journal of Infrastructure Development, India Development Foundation, vol. 1(2), pages 87-109, December.
    • Handle: RePEc:sae:jouinf:v:1:y:2009:i:2:p:87-109
    DOI: 10.1177/097493060900100201
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    Cited by:

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    3. Meeks, Robyn C. & Omuraliev, Arstan & Isaev, Ruslan & Wang, Zhenxuan, 2023. "Impacts of electricity quality improvements: Experimental evidence on infrastructure investments," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    4. Shaun McRae, 2015. "Infrastructure Quality and the Subsidy Trap," American Economic Review, American Economic Association, vol. 105(1), pages 35-66, January.

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    More about this item

    Keywords

    JEL Classification: H54; JEL Classification: Q26; Willingness to pay; contingent valuation; averting behaviour; conjoint analysis; household welfare;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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