TY - JOUR
T1 - Economic valuation of safe water from new boreholes in rural Zambia
T2 - A coping cost approach
AU - Shimamura, Yasuharu
AU - Shimizutani, Satoshi
AU - Taguchi, Shimpei
AU - Yamada, Hiroyuki
N1 - Funding Information:
This study was conducted as part of the project “Empirical Research in Africa” at the JICA Ogata Sadako Research Institute for Peace and Development, which sponsored our data collection and gave us formal permission to use these data. We thank the Ministry of Local Government and Housing of Zambia and the Japan International Cooperation Agency for permission to conduct the study. We also thank Shinichi Masuda, Shigeyuki Matsumoto, Teruki Murakami, Tomoaki Tanaka, Tomoyoshi Suzuki and Eiji Yamada for their constructive comments on the draft. The views expressed in the paper are those of the authors and do not represent the official positions of either the JICA Ogata Sadako Research Institute for Peace and Development or JICA. The authors are responsible for any errors or omissions.
Publisher Copyright:
© 2021 The Authors
PY - 2022/1
Y1 - 2022/1
N2 - Access to safe water sources remains scarce in sub-Saharan African countries. We estimate the economic value of safe water from newly constructed boreholes in rural Zambia. Our quasi-experimental setting allows us to estimate the revealed preference measure of new safe water sources in a causal way, empowered by precise information on water collection and distance to new facilities. We show that the share of time value for water collection in total expenditures was about 10% at the baseline survey, which was reduced to about 3% at the end-line survey, but the difference-in-differences analysis reveals that the project did not reduce the time burden for collecting water due to the greater demand for safe water. The main net benefit of the project lies in improved productivity due to decreased diarrhea incidence among working-age adults. The estimated internal rate of return of the project is not large. However, the project is likely to have additional dynamic health benefits due to the decrease in disability-adjusted life years (DALYs), corresponding to 192.3 USD per DALY and 6.88 USD per household.
AB - Access to safe water sources remains scarce in sub-Saharan African countries. We estimate the economic value of safe water from newly constructed boreholes in rural Zambia. Our quasi-experimental setting allows us to estimate the revealed preference measure of new safe water sources in a causal way, empowered by precise information on water collection and distance to new facilities. We show that the share of time value for water collection in total expenditures was about 10% at the baseline survey, which was reduced to about 3% at the end-line survey, but the difference-in-differences analysis reveals that the project did not reduce the time burden for collecting water due to the greater demand for safe water. The main net benefit of the project lies in improved productivity due to decreased diarrhea incidence among working-age adults. The estimated internal rate of return of the project is not large. However, the project is likely to have additional dynamic health benefits due to the decrease in disability-adjusted life years (DALYs), corresponding to 192.3 USD per DALY and 6.88 USD per household.
KW - Borehole
KW - Groundwater development
KW - Nonmarket valuation
KW - Revealed preference
KW - Time use
KW - Zambia
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U2 - 10.1016/j.wre.2021.100192
DO - 10.1016/j.wre.2021.100192
M3 - Article
AN - SCOPUS:85121496637
SN - 2212-4284
VL - 37
JO - Water Resources and Economics
JF - Water Resources and Economics
M1 - 100192
ER -
