SPRING CLEANING: RURAL WATER IMPACTS,

VALUATION, AND PROPERTY RIGHTS INSTITUTIONS

PGPSM09014 GYAN PRATIK

PGPSM09029 R HARSHANTH

PGPSM09044 SHIVAM YADAV

3. SPRING PROTECTION IMPACTS & VALUATION OF CLEAN WATER

3.1 Data collection and analysis methodologies:

● Sample of 184 springs and 1354 households in rural Busia and Butere-Mumias districts of Kenya
● Random assignment of springs into three treatment groups with different timing of protection
● Four rounds of data collection from 2004 to 2007
● Outcome measures: Water quality (E. coli counts), child health (diarrhea prevalence and
anthropometrics), water source choice, and water valuation
● Estimation strategies: Intention-to-treat, local average treatment effect, travel cost model, and structural
model
3. SPRING PROTECTION IMPACTS & VALUATION OF CLEAN WATER

3.2 Valuing Clean Water - Methodology:

● Travel Cost Model of Household’s Water Source Choices:

 The valuation of water from a specific source reflects both health and non-health attributes, such as
convenience and accessibility.
 By analyzing households' water source preferences and behaviors, the study aims to quantify the
value that individuals assign to clean water and the factors influencing their decision-making process.
● Revealed Preference Spring Protection Valuations Using the travel cost model
 By observing changes in water source choices and behaviors following the spring protection
intervention, the research assesses the impact of improved water quality on households' preferences
and valuations.
 The findings suggest that households' valuation of clean water may be influenced by factors such as
perceived quality, convenience, and health benefits.
3. SPRING PROTECTION IMPACTS & VALUATION OF CLEAN WATER

3.2 Valuing Clean Water - Methodology:

● Stated Preference Approaches:
 By directly asking households about their valuation of clean water and the benefits of the intervention,
researchers can gather explicit preferences and monetary values associated with improved water quality.
 A comparison between revealed and stated preference valuations provides insights into the discrepancies and
factors affecting households' perceptions of clean water.
● Households' Valuation of Health:
 The households' valuation of health, as reflected in their willingness to pay for clean water, may be lower than
typically assumed by public health planners.
 The study's findings suggest that households' valuations of health improvements through spring protection
interventions are consistent with models indicating a high income elasticity of demand for health. This insight
sheds light on the economic factors influencing households' decisions regarding water quality and health
investments..
 3. SPRING PROTECTION IMPACTS & VALUATION OF CLEAN WATER
3.3 Results on water quality and child health
● Spring protection reduces fecal contamination at
the source by 66%, but household water quality
improves less (24%) due to recontamination
● Spring protection reduces diarrhea among
children under age three by one quarter, with
larger effects for girls
● Spring protection has positive but insignificant
effects on child weight and body mass index
● No evidence of differential effects by baseline
sanitation, hygiene knowledge, or education
3.4 Results on water source choice its valuation
● Households trade off water quality against walking
distance to the source
● Spring protection increases the use of protected
springs, especially for households that were not sole-
source users at baseline
● Revealed preference estimates of annual household
valuation for spring protection are US$2.96, much
lower than stated preference estimates and health
planners’ valuations
● Valuation increases with latrine ownership and
mother’s education, but not with diarrhea knowledge or
child health
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