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Individual status quo modelling for a rural water service in Rwanda: application of a choice experiment
Univ Gothenburg, Dept Econ, Gothenburg; Univ Rwanda, Dept Econ, Butare, Rwanda.
Mid Sweden University, Faculty of Human Sciences, Department of Business, Economics and Law. Lulea Univ Technol, Dept Business Adm Technol & Social Sci, LuleƄ.ORCID iD: 0000-0001-7206-6568
2016 (English)In: Environment and Development Economics, ISSN 1355-770X, E-ISSN 1469-4395, Vol. 21, no 4, p. 490-511Article in journal (Refereed) Published
Abstract [en]

In Rwanda, rural water supply is not uniformly distributed. Rural areas are characterized by differences in the distance to the nearest water point and in water quality for domestic water, by watering frequency and water availability for irrigation water, and by the price for both. A household's perception of further improvements in water supply will, therefore, depend heavily on the situation it currently faces. The authors used a choice experiment to model how the individual status quo (SQ) affects preferences. Accounting for individual SQ information improves model significance relative to simply using the generic SQ parameter in the model, and the willingness to pay increases. Not using this information leads to a downward bias - and, in some cases, statistical insignificance - in estimates of households' valuation of health improvements linked to improved domestic water availability, as well as of increased watering frequency linked to the improved availability of irrigation water.

Place, publisher, year, edition, pages
2016. Vol. 21, no 4, p. 490-511
National Category
Economics
Identifiers
URN: urn:nbn:se:miun:diva-28748DOI: 10.1017/S1355770X15000364ISI: 000380913200004Scopus ID: 2-s2.0-84948979376OAI: oai:DiVA.org:miun-28748DiVA: diva2:968091
Available from: 2016-09-12 Created: 2016-09-12 Last updated: 2017-11-21Bibliographically approved

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Stage, Jesper

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