Evaluating the welfare effects of improved water quality using the choice experiment method

Abou-Ali, Hala and Fredrik Carlsson ()
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Abou-Ali, Hala: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

No 131, Working Papers in Economics from Göteborg University, Department of Economics

Abstract: This paper analyzes the welfare effects of improved health status through increased water quality using a choice experiment. The survey was administered to a random sample of households in metropolitan Cairo, Egypt. We apply a random parameter logit model in the analysis and illustrate the richness of information that can be obtained from this type of model by estimating individual level willingness to pay(WTP). We find a significant WTP for improved health status, both for short-run and long-run health effects. However, the estimated WTP is fairly low compared with the costs of a program that would achieve these improvements.

Keywords: Choice experiment; Health; Water quality; Willingness to pay (search for similar items in EconPapers)
JEL-codes: C25 I10 Q25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-edu, nep-hea and nep-res
Date: 2004-05-06
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