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Valuing access to water - a spatial hedonic approach applied to Indian cities
 
Author:Anselin, Luc; Lozano-Gracia, Nancy; Deichmann, Uwe; Lall, Somik; Collection Title:Policy Research working paper ; no. WPS 4533
Country:India; Date Stored:2008/02/26
Document Date:2008/02/01Document Type:Policy Research Working Paper
Language:EnglishRegion:South Asia
Report Number:WPS4533SubTopics:Water Use; Town Water Supply and Sanitation; Water and Industry; Housing & Human Habitats; Water Supply and Sanitation Governance and Institutions
Volume No:1 of 1  

Summary: An important infrastructure policy issue for rapidly growing cities in developing countries is how to raise fiscal revenues to finance basic services in a fair and efficient manner. This paper applies hedonic analysis that explicitly accounts for spatial spillovers to derive the value of improved access to water in the Indian cities of Bhopal and Bangalore. The findings suggest that by looking at individual or private benefits only, the analysis may underestimate the overall social welfare from investing in service supply especially among the poorest residents. The paper further demonstrates how policy simulations based on these estimates help prioritize spatial targeting of interventions according to efficiency and equity criteria.

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