A hedonic valuation of residential water services

This paper investigates the economic value of municipal, private, and community-managed water services in Guatemala through a hedonic analysis of rental housing prices observed in 2006. Hedonic models are jointly estimated with water service choices using a maximum simulated likelihood approach in order to control for potential endogeneity. Findings indicate that the value of piped water depends on the type of water utility. The estimated value of municipal services is at least 15 times as much as the average water bill, while value estimates are not significant for private and community-managed systems. Value differentials are discussed considering the performance of water utilities and their institutional arrangements

Social funds: evidence on targeting, impacts and sustainability

Impact evaluations show that social fund resources are pro-poor, and that targeting has improved over time. Despite the leakage which occurs to better-off areas and households, social fund performance compares favorably with other public programmes. Investments largely reflect community needs and priorities and have increased access to, quality and utilization of basic social infrastructure. These benefits have generally translated into improvements in the health and education status of households, though specific impacts vary by country, region, and sector. The vast majority of facilities are operating several years after completion, but long-term sustainability of water systems is particularly problematic given insufficient cost recovery. Copyright © 2002 John Wiley & Sons, Ltd.