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Valuing access to water - a spatial hedonic approach applied to Indian cities

Luc Anselin (), Nancy Lozano-Gracia (), Uwe Deichmann and Somik Lall

No 4533, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Keywords: Town Water Supply and Sanitation; Housing&Human Habitats; Water Supply and Sanitation Governance and Institutions; Water and Industry; Water Use (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cwa, nep-dev, nep-geo and nep-ure
Date: 2008-02-01
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