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Assessing preferences in cost-benefit analysis: Reflections on rural water supply evaluation in haiti

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  • Duncan Macrae
  • Dale Whittington

Abstract

This article examines an area of cost-benefit methodology which has come under increasing philosophical scrutiny in recent years: the appropriate treatment of individuals' preferences. We illustrate some of the difficulties involved in assessing preferences in the context of a concrete example: the evaluation of a rural water supply project in southern Haiti. Four problems in the application of cost-benefit principles are discussed: (1) how to count the social value of private water taps connected to homes if they are preferred for prestige reasons, (2) how to assess husbands' preferences concerning the time savings by wives who previously carried water from more distant sources, (3) how to count preferences based on a respondent's desire to support general community welfare, and (4) how to evaluate a water project when people's preferences may change after the new water system is installed. We argue that policy analysis will be improved by presenting philosophical arguments as to why some preferences should be included in the evaluation and others ignored.

Suggested Citation

  • Duncan Macrae & Dale Whittington, 1987. "Assessing preferences in cost-benefit analysis: Reflections on rural water supply evaluation in haiti," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 7(2), pages 246-263.
  • Handle: RePEc:wly:jpamgt:v:7:y:1987:i:2:p:246-263
    DOI: 10.2307/3323827
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    Cited by:

    1. Dale Whittington & Duncan Macrae, 1990. "Comment: Judgments about who has standing in cost-benefit analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 9(4), pages 536-547.
    2. Ahmed, Hiba, 2000. "The Benefits Of Water Improvement Program To Women: A Literature Review," Staff Paper Series 11567, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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