Hostname: page-component-586b7cd67f-g8jcs Total loading time: 0 Render date: 2024-11-24T04:58:15.109Z Has data issue: false hasContentIssue false
  • English
  • Français

A hedonic valuation of sanitation services in Guatemala

Published online by Cambridge University Press:  14 January 2020

William F. Vásquez  and
Laura Beaudin Open the ORCID record for Laura Beaudin [Opens in a new window]
William F. Vásquez
Affiliation:
Department of Economics, Fairfield University, Fairfield, CT, USA
Laura Beaudin*
Affiliation:
Department of Economics, Bryant University, Smithfield, RI, USA
*
*Corresponding author. E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Many developing countries lack universal sanitation services for residents. Years of inappropriate disposal of solid waste and wastewater have increased the potential for devastating environmental and health issues. An economic valuation of sanitation services may help in planning investment projects by demonstrating the benefits that households derive from having access to improved sanitation. We examine Guatemala as a case study and employ a series of hedonic models to estimate the value that households in Guatemala assign to the sanitation services of solid waste collection and connections to sewer infrastructure. Findings indicate that residents are willing to pay higher rents for both wastewater and solid waste removal. Policy implications are discussed.

Keywords

economic valueGuatemalahedonic modelsanitationsolid wastewastewaterwillingness to pay
Type
Research Article
Information
Environment and Development Economics , Volume 25 , Issue 4 , August 2020 , pp. 378 - 398
Copyright
Copyright © Cambridge University Press 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adamowicz, W, Louviere, J and Williams, M (1994) Combining revealed and stated preference methods for valuing environmental amenities. Journal of Environmental Economics and Management 26, 271–292.CrossRefGoogle Scholar
Afroz, R, Hanaki, K and Hasegawa-Kurisu, K (2009) Willingness to pay for waste management improvement in Dhaka city, Bangladesh. Journal of Environmental Management 90, 492–503.CrossRefGoogle ScholarPubMed
Basili, M, Matteo, MD and Ferrini, S (2006) Analysing demand for environmental quality: a willingness to pay/accept study in the province of Siena (Italy). Waste Management 26, 209–219.CrossRefGoogle Scholar
Bergstrom, JC and Stoll, JR (1990) An analysis of information overload with implications for survey design research. Leisure Sciences 12, 265–280.CrossRefGoogle Scholar
Birol, E and Das, S (2010) Estimating the value of improved wastewater treatment: the case of River Ganga, India. Journal of Environmental Management 91, 2163–2171.CrossRefGoogle ScholarPubMed
Bluffstone, R and DeShazo, JR (2003) Upgrading municipal environmental services to European Union levels: a case study of household willingness to pay in Lithuania. Environment and Development Economics 8, 637–654.CrossRefGoogle Scholar
Boadi, KO and Kuitunen, M (2005) Environmental and health impacts of household solid waste handling and disposal practices in third world cities: the case of the Accra Metropolitan Area, Ghana. Journal of Environmental Health 68, 32–36.Google ScholarPubMed
Boxall, PC, Adamowicz, WL, Swait, J, Williams, M and Louviere, J (1996) A comparison of stated preference methods for environmental valuation. Ecological Economics 18, 243–253.CrossRefGoogle Scholar
Boyle, A, Barrilleaux, C and Scheller, D (2014) Does Walkability influence housing prices? Social Science Quarterly 95, 852–867.CrossRefGoogle Scholar
Cameron, TA, Poe, GL, Ethier, RG and Schulze, WD (2002) Alternative non-market value-elicitation methods: are the underlying preferences the same? Journal of Environmental Economics and Management 44, 391–425.CrossRefGoogle Scholar
Carson, RT and Mitchell, RC (1989) Using Surveys to Value Public Goods: The Contingent Valuation Method. Washington, DC: Resources for the Future.Google Scholar
Challcharoenwattana, A and Pharino, C (2016) Wishing to finance a recycling program? Willingness-to-pay study for enhancing municipal solid waste recycling in urban settlements in Thailand. Habitat International 51, 23–30.CrossRefGoogle Scholar
Chay, KY and Greenstone, M (2005) Does air quality matter? Evidence from the housing market. Journal of Political Economy 113, 376–424.CrossRefGoogle Scholar
Cheshire, P and Sheppard, S (2002) The welfare economics of land use planning. Journal of Urban Economics 52, 242–269.CrossRefGoogle Scholar
Choumert, J, Stage, J and Uwera, C (2014) Access to water as determinant of rental values: a housing hedonic analysis in Rwanda. Journal of Housing Economics 26, 48–54.CrossRefGoogle Scholar
Choumert, J, Kéré, NE and Laré-Dondarini, AL (2016) A multi-level housing hedonic analysis of water and sanitation access. Economics Bulletin 36, 1010–1037.Google Scholar
Czajkowski, M, Kądziela, T and Hanley, N (2014) We want to sort! assessing households’ preferences for sorting waste. Resource and Energy Economics 36, 290–306.CrossRefGoogle Scholar
Day, B, Bateman, I and Lake, I (2007) Beyond implicit prices: recovering theoretically consistent and transferable values for noise avoidance from a hedonic property price model. Environmental and Resource Economics 37, 211–232.CrossRefGoogle Scholar
Elliott, P, Briggs, D, Morris, S, de Hoogh, C, Hurt, C, Jensen, TK, Maitland, I, Richardson, S, Wakefield, J and Jarup, L (2001) Risk of adverse birth outcomes in populations living near landfill sites. British Medical Journal 323, 363–368.CrossRefGoogle ScholarPubMed
Gibbons, S, Mourato, S and Resende, GM (2014) The amenity value of English nature: a hedonic price approach. Environmental and Resource Economics 57, 175–196.CrossRefGoogle Scholar
Gillespie, R and Bennett, J (2013) Willingness to pay for curbside recycling in Brisbane, Australia. Journal of Environmental Planning and Management 56, 362–377.CrossRefGoogle Scholar
Gulyani, S, Bassett, EM and Talukdar, D (2012) Living conditions, rents, and their determinants in the slums of Nairobi and Dakar. Land Economics 88, 251–274.CrossRefGoogle Scholar
Hall, RP, Vance, EA, Van Houweline, E and Huang, W (2015) Willingness to pay for VIP latrines in rural Senegal. Journal of Water, Sanitation and Hygiene for Development 5, 586–593.CrossRefGoogle Scholar
Henry, RK, Yongsheng, Z and Jun, D (2006) Municipal solid waste management challenges in developing countries–Kenyan case study. Waste Management 26, 92–100.CrossRefGoogle ScholarPubMed
Hoornweg, D and Bhada-Tata, P (2012) What a waste: a global review of solid waste management. Urban Development Series Knowledge Papers 15, 1–98.Google Scholar
Huang, CJ and Ho, YH (2005) Willingness to pay for waste clearance and disposal: results of the Taichung City study. The Business Review, Cambridge 4, 136–141.Google Scholar
Hussain, I, Raschid, L, Hanjra, MA, Marikar, F and van der Hoek, W (2001) A framework for analyzing socioeconomic, health and environmental impacts of wastewater use in agriculture in developing countries. Working Paper 26, International Water Management Institute (IWMI), Colombo, Sri Lanka.Google Scholar
Hutton, G (2012) Monitoring ‘affordability’ of water and sanitation services after 2015: review of global indicator options. A paper submitted to the United Nations Office of the High Commission for Human Rights. Available at https://washdata.org/file/425/download.Google Scholar
Ichoku, HE, Fonta, WM and Kedir, A (2009) Measuring individuals’ valuation distributions using a stochastic payment card approach: application to solid waste management in Nigeria. Environment and Development Economics 11, 509–521.Google Scholar
INE, (2015) Compendio Estadístico Ambiental. Guatemala: Instituto Nacional de Estadística (INE). Available at https://www.ine.gob.gt/sistema/uploads/2016/12/12/akJPkytmTlGr1QQoommBxUNXhZ9Qhwph.pdf (in Spanish).Google Scholar
Knight, JR, Herrin, WE and Balihuta, AM (2004) Housing prices and maturing real estate markets: evidence from Uganda. Journal of Real Estate Finance and Economics 28, 5–18.CrossRefGoogle Scholar
Kroes, E and Sheldon, R (1988) Stated preference methods. Journal of Transport Economics and Policy 22, 11–25.Google Scholar
Kuminoff, NV, Parmeter, CF and Pope, JC (2010) Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities? Journal of Environmental Economics and Management 60, 145–160.CrossRefGoogle Scholar
Laré-Dondarini, AL (2015) Analysis of household demand for improved sanitation: the case of green latrines in Dapaong City in Northern Togo. Canadian Journal of Development Studies 36, 555–572.CrossRefGoogle Scholar
Leggett, CG and Bockstael, NE (2000) Evidence of the effects of water quality on residential land prices. Journal of Environmental Economics and Management 39, 121–144.CrossRefGoogle Scholar
Li, T, Espínola-Arredondo, A and McCluskey, JJ (2016) Promoting residential recycling: an alternative policy based on a recycling reward system. Games 7, 21, 10.3390/g7030021.CrossRefGoogle Scholar
Louviere, JJ, Hensher, DA and Swait, JD (2000) Stated Choice Methods: Analysis and Applications. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Ma, S and Swinton, SM (2012) Hedonic valuation of farmland using sale prices versus appraised values. Land Economics 88, 1–15.CrossRefGoogle Scholar
Mateo-Sagasta, J, Raschid-Sally, L and Thebo, A (2015) Global wastewater and sludge production, treatment and use. In Drechsel, P, Qadir, M and Wichelns, D (eds), Wastewater. Dordrecht: Springer, pp. 15–38.Google Scholar
McConnell, V and Walls, MA (2005) The Value of Open Space: Evidence From Studies of Nonmarket Benefits. Washington, DC: Resources for the Future.Google Scholar
Ndunda, EN and Mungatana, ED (2013) Evaluating the welfare effects of improved wastewater treatment using a discrete choice experiment. Journal of Environmental Management 123, 49–57.CrossRefGoogle ScholarPubMed
Neill, HR, Cummings, RG, Ganderton, PT, Harrison, GW and McGuckin, T (1994) Hypothetical surveys and real economic commitments. Land Economics 70, 145–154.CrossRefGoogle Scholar
Palmquist, RB (1982) Measuring environmental effects on property values without hedonic regressions. Journal of Urban Economics 11, 333–347.CrossRefGoogle Scholar
Park, S and Berry, FS (2013) Analyzing effective municipal solid waste recycling programs: the case of county-level MSW recycling performance in Florida, USA. Waste Management and Research 31, 896–901.CrossRefGoogle ScholarPubMed
Rakodi, C, Gatabaki-Kamau, R and Devas, N (2000) Poverty and political conflict in Mombasa. Environment and Urbanization 12, 153–170.CrossRefGoogle Scholar
Satterthwaite, D (2009) The implications of population growth and urbanization for climate change. Environment and Urbanization 21, 545–567.CrossRefGoogle Scholar
Schadwinkel, A (2012) Guatemala's trash problems ‘getting worse’. DW, 4 September 2012. Available at http://www.dw.com/en/guatemalas-trash-problems-getting-worse/a-16219025.Google Scholar
SEGEPLAN (2015) Informe Final del Cumplimiento de los Objetivos de Desarrollo del Milenio. Guatemala: Secretaría de Planificación y Programación de la Presidencia (SEGEPLAN) (in Spanish).Google Scholar
Seraj, KFB (2008) Willingness to Pay for Improved Sanitation Services and Its Implication on Demand Responsive Approach of BRAC Water, Sanitation and Hygiene Programme. Dhaka, Bangladesh: Bangladesh Rural Advancement Committee (BRAC).Google Scholar
Tauchen, H and Witte, AD (2001) Estimating hedonic models: implications of the theory. Technical Working Paper 271. National Bureau of Economic Research, Cambridge, MA.CrossRefGoogle Scholar
Tomatis, L (1990) Cancer: Causes, Occurrence and Control. Lyon, France: International Agency for Research on Cancer.Google Scholar
Tuttle, CM and Heintzelman, MD (2015) A loon on every lake: a hedonic analysis of lake quality in the Adirondacks. Resource and Energy Economics 39, 1–15.CrossRefGoogle Scholar
United Nations (2015) The Millennium Development Goals Report 2015. New York, NY: United Nations.Google Scholar
United Nations (2019) Sustainable Development Goals: about the Sustainable Development Goals. Available at https://www.un.org/sustainabledevelopment/sustainable-development-goals.Google Scholar
Uytewaal, E (2016) Guatemala. An assessment of business development opportunities in the water sector. The Hague: Project LED15SJ002, Uytewaal Consultancies.Google Scholar
van den Berg, C and Nauges, C (2012) The willingness to pay for access to piped water: a hedonic analysis of house prices in southwest Sri Lanka. Letters in Spatial and Resource Sciences 5, 151–166.CrossRefGoogle Scholar
Vásquez, WF (2011) Municipal water services in Guatemala: exploring official perceptions. Water Policy 13, 362–374.CrossRefGoogle Scholar
Vásquez, WF (2013 a) A hedonic valuation of residential water services. Applied Economic Perspectives and Policy 35, 661–678.CrossRefGoogle Scholar
Vásquez, WF (2013 b) An economic valuation of water connections under different approaches of service governance. Water Resources and Economics 2, 17–29.CrossRefGoogle Scholar
Viel, JF, Arveux, P, Baverel, J and Cahn, JY (2000) Soft-tissue sarcoma and non-Hodgkin's lymphoma clusters around a municipal solid waste incinerator with high dioxin emission levels. American Journal of Epidemiology 152, 13–19.CrossRefGoogle ScholarPubMed
Walsh, PJ, Milon, JW and Scrogin, DO (2011) The spatial extent of water quality benefits in urban housing markets. Land Economics 87, 628–644.CrossRefGoogle Scholar
Wang, H, He, J, Kim, Y and Kamata, T (2014) Municipal solid waste management in rural areas and small counties: an economic analysis using contingent valuation to estimate willingness to pay for Yunnan, China. Waste Management and Research 32(8), 695–706. doi: doi.org/10.1177/0734242X14539720.CrossRefGoogle ScholarPubMed
Yusuf, AA and Koundouri, P (2005) Willingness to pay for water and location bias in hedonic price analysis: evidence from the Indonesian housing market. Environment and Development Economics 10, 821–836.CrossRefGoogle Scholar
Yusuf, AA and Resosudarmo, BP (2009) Does clean air matter in developing countries’ megacities? A hedonic price analysis of the Jakarta housing market, Indonesia. Ecological Economics 68, 1398–1407.CrossRefGoogle Scholar
Supplementary material: PDF

Vásquez and Beaudin supplementary material

Online Appendix

Download Vásquez and Beaudin supplementary material(PDF)
PDF 246.4 KB