Skip to main content
×
Home
    • Aa
    • Aa

Awareness and the demand for environmental quality: survey evidence on drinking water in urban India*

  • JYOTSNA JALAN (a1), E. SOMANATHAN (a2) and SARASWATA CHAUDHURI (a3)
Abstract
ABSTRACT

The demand for environmental quality is often presumed to be low in developing countries due to poverty. Less attention has been paid to the possibility that lack of awareness about adverse health effects of environmental pollution could also keep the demand low. We use a household survey from urban India to estimate the effects of schooling, exposure to mass media, and other measures of awareness on home water purification. We find that these measures of awareness have statistically significant effects on home purification and, therefore, on willingness to pay. These effects are similar in magnitude to the wealth effects. Average costs of different home purification methods are used to generate partial estimates of willingness to pay for better drinking water quality.

Copyright
References
Hide All
Abrahams N.A., Hubbell B.J., and Jordan J.L. (2000), ‘Joint production and averting expenditure measures of willingness to pay: do water expenditures really measure avoidance costs?’, American Journal of Agricultural Economics 82: 427437.
Alberini A., Eskeland G.S., Krupnick A., and McGranahan G. (1996), ‘Determinants of diarrheal disease in Jakarta’, Water Resources Research 32: 22592269.
Borghi J., Guinness L., Ouedraogo J., and Curtis V. (2002), ‘Is hygiene promotion cost effective? A case study in Burkina Faso’, Tropical Medicine and International Health 7: 960969.
Boyce J.K., Klemer A.R., Templet P.H., and Willis C.E. (1999), ‘Power distribution, the environment, and public health: a state-level analysis’, Ecological Economics 29: 127140.
Brooks N. and Sethi R. (1997), ‘The distribution of pollution: community characteristics and exposure to air toxics’, Journal of Environmental Economics and Management 32: 233251.
Cairncross S., Shordt K., Zacharia S., and Govindan B.K. (2005), ‘What causes sustainable changes in hygiene behaviour? A cross-sectional study from Kerala, India’, Social Science and Medicine 61: 22122220.
Colwell R.R. et al. (2003), ‘Reduction of cholera in Bangladeshi villages by simple filtration’, Proceedings of the National Academy of Sciences of the USA 100: 10511055.
Courant P.N. and Porter R.C. (1981), ‘Averting expenditure and the cost of pollution’, Journal of Environmental Economics and Management 8: 321329.
Curtis V., Kanki B., Mertens T., Traoré E., Diallo I., Tall F., and Cousens S. (1995), ‘Potties, pits and pipes: explaining hygiene behaviour in Burkina Faso’, Social Science and Medicine 41: 383393.
Curtis V. and Cairncross S. (2003), ‘Effect of washing hands with soap on diarrhoea risk in the community: a systematic review’, The Lancet Infectious Diseases 3: 275281.
Dasgupta P. (2004), ‘Valuing health damages from water pollution in urban Delhi, India: a health production function approach’, Environment and Development Economics 9: 83106.
Farrell P. and Fuchs V.R. (1982), ‘Schooling and health: the cigarette connection’, Journal of Health Economics 1: 217230.
Filmer D. and Pritchett L. (2001), ‘Estimating wealth effects without expenditure data or tears: with an application to educational enrollments in states of India’, Demography 38: 115132.
Grossman M. (1976), ‘The correlation between health and schooling’, in Terleckyj N.E. (ed.), Household Production and Consumption, New York: Columbia University Press.
Harrington W. and Portney P.R. (1987), ‘Valuing the benefits of health and safety regulation’, Journal of Urban Economics 22: 101112.
Hausman J. and McFadden D. (1984), ‘A specification test for the multinomial logit model’, Econometrica 52: 12191240.
International Institute of Population Sciences (IIPS) and ORC Macro (2000), National Family Health Survey (NFHS-2), 1998–99: India, Mumbai, India.
Jalan J. and Ravallion M. (2003), ‘Does piped water reduce diarrhea for children in rural India?’, Journal of Econometrics 112: 153173.
Jalan J. and Somanathan E. (2008), ‘The importance of being informed: experimental evidence on demand for environmental quality’, Journal of Development Economics 87: 1428.
Kenkel D. (1991), ‘Health behavior, health knowledge, and schooling’, Journal of Political Economy 99: 287305.
Kolstad C.D. (2000), Environmental Economics, New York: Oxford University Press.
McConnell K.E. and Rosado M.A. (2000) ‘Valuing discrete improvements in drinking water quality through revealed preferences’, Water Resources Research 36: 1575–82.
National Sample Survey Organisation (1999) Household Consumer Expenditure and Employment Situation in India: NSS 54th Round, New Delhi: Government of India.
Pargal S. and Wheeler D. (1996) ‘Informal regulation of industrial pollution in developing countries: evidence from Indonesia’, The Journal of Political Economy 104: 13141327.
Parikh K.S., Parikh J., and Raghu Ram T.L. (1999), ‘Air and water quality management: new initiatives needed’, in Parikh K.S. (ed.), India Development Report, New Delhi: Oxford University Press.
Pattanayak S.K., Yang J., Whittington D., and Balkumar K.C. (2005), ‘Coping with unreliable public water supplies: averting expenditures by households in Kathmandu, Nepal’, Water Resources Research 41: 111.
Quick R., Mintz E., Sobel J., Mead P., Reiff F., and Tauxe R. (1997), ‘A new strategy for waterborne disease prevention’, 23rd WEDC Conference Durban, South Africa.
Rosenzweig M. and Paul Schultz T. (1983), ‘Estimating a household production function: heterogeneity, the demand for health inputs, and their effects on birth weight’, Journal of Political Economy 91: 723746.
Roy J., Chattopadhyay S., Mukherjee S., Kanjilal M., Samajpati S., and Roy S. (2004), ‘An economic analysis of demand for water quality: case of Kolkata’, Economic and Political Weekly 39: 186193.
Sen A. and Himanshu (2004), ‘Poverty and inequality in India –I’, Economic and Political Weekly, 18: 42474263.
Small K.A. and Hsiao C. (1985), ‘Multinomial logit specification tests’, International Economic Review 26: 619627.
Smith R.J. and Blundell R.W. (1986), ‘An exogeneity test for a simultaneous equation Tobit model with application to labor supply’, Econometrica 54: 679–86.
Strina A., Cairncross S., Barreto M.L., Larrea C., and Prado M.S. (2003), ‘Childhood diarrhea and observed hygiene behaviour in Salvador, Brazil’, American Journal of Epidemiology 157: 10321038.
World Health Organization (2002), The World Health Report 2002, Geneva: Switzerland.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Environment and Development Economics
  • ISSN: 1355-770X
  • EISSN: 1469-4395
  • URL: /core/journals/environment-and-development-economics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 4
Total number of PDF views: 39 *
Loading metrics...

Abstract views

Total abstract views: 232 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 19th October 2017. This data will be updated every 24 hours.