Journal
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT
Volume 66, Issue 3, Pages 460-475Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/j.jeem.2013.05.001
Keywords
Drinking water quality; Averting expenditure; Compensating behavior
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This paper tests the hypothesis that the expansion of improved drinking water supplies in rural India reduced household expenditure on water quality, offsetting some of the quality benefits from source protection. I estimate demand for in-home treatment using geological characteristics to predict a household's drinking water source. The probability of treatment and in particular boiling reduces by 18-27 percentage points in response to source protection, offsetting 4% of the water quality gains and saving households 0.5-1% in monthly expenditure. Behavioral choices partly counteract the water quality gains from source protection. (C) 2013 Elsevier Inc. All rights reserved.
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