Post by Sapphire Capital on Aug 27, 2008 3:05:31 GMT 4
Valuing Access to Water - A Spatial Hedonic Approach Applied to Indian Cities
Luc Anselin
University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics
Nancy Lozano-Gracia
Uwe Deichmann
World Bank
Somik V. Lall
World Bank
February 1, 2008
World Bank Policy Research Working Paper No. 4533
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.
papers.ssrn.com/sol3/Delivery.cfm/4533.pdf?abstractid=1100348&mirid=2
Luc Anselin
University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics
Nancy Lozano-Gracia
Uwe Deichmann
World Bank
Somik V. Lall
World Bank
February 1, 2008
World Bank Policy Research Working Paper No. 4533
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.
papers.ssrn.com/sol3/Delivery.cfm/4533.pdf?abstractid=1100348&mirid=2