Estimating willingness-to-pay and financial feasibility in small water projects in El Salvador

Felipe Perez-Pineda and Carlos Quintanilla-Armijo

Journal of Business Research, 2013, vol. 66, issue 10, 1750-1758

Abstract: The study here uses a non-market evaluation technique – the contingent valuation method – to estimate the economic value that people in four semi-rural communities in El Salvador place on improved water quality and sanitation. The findings suggest that access to potable water and sanitation was a high priority for people living in those communities. In addition, their high willingness-to-pay for these improved services supports the argument that medium-sized water supply projects in El Salvador could be profitable from the private perspective. The concept of maximum willingness-to-pay, well understood, can help policy makers in setting water charges in developing economies. This study shows that designing financially feasible projects that have a positive impact on the social conditions in poor communities is possible.

Keywords: El Salvador; Potable water and sanitation; Contingent valuation method; Willingness-to-pay; Financial feasibility (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:66:y:2013:i:10:p:1750-1758

DOI: 10.1016/j.jbusres.2013.01.014

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