Measuring Welfare Gains from Better Quality Infrastructure

Irina Klytchnikova and Michael Lokshin
Additional contact information
Irina Klytchnikova: The World Bank, iklytchnikova@worldbank.org

Journal of Infrastructure Development, 2009, vol. 1, issue 2, 87-109

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.

Keywords: JEL Classification: H54; JEL Classification: Q26; Willingness to pay; contingent valuation; averting behaviour; conjoint analysis; household welfare (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Measuring welfare gains from better quality infrastructure (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jouinf:v:1:y:2009:i:2:p:87-109

DOI: 10.1177/097493060900100201

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