Valuing access to water-A spatial hedonic approach, with an application to Bangalore, India

Luc Anselin, Nancy Lozano-Gracia, Uwe Deichmann, Somik Lall

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

An important infrastructure policy issue for rapidly growing cities in developing countries is how to raise fiscal revenues to finance basic services in a fair and efficient manner. This requires estimates of the potential benefits or positive welfare effects that may follow from improved infrastructure. In this paper, we take advantage ofa unique geo-referenced household survey to carry out a hedonic analysis ofhousing values that explicitly accounts for spatial spillovers. We use this to derive an estimate ofthe value ofimproved access to water in the Indian city of Bangalore. The findings suggest that by limiting the focus to individual or private benefits only, we may underestimate the overall social welfare from investing in service supply. We further demonstrate how spatially explicit policy simulations based on these estimates provide insight into the total effects oftargeted interventions.

Original languageEnglish (US)
Pages (from-to)162-179
Number of pages18
JournalSpatial Economic Analysis
Volume5
Issue number2
DOIs
StatePublished - Jun 2010

Fingerprint

India
hedonic analysis
infrastructure
Welfare
value analysis
Water
water
household survey
Infrastructure
social welfare
Estimate
finance
revenue
welfare
developing world
Developing Countries
developing country
supply
Finance
simulation

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Geography, Planning and Development
  • Earth and Planetary Sciences (miscellaneous)
  • Statistics, Probability and Uncertainty

Cite this

Valuing access to water-A spatial hedonic approach, with an application to Bangalore, India. / Anselin, Luc; Lozano-Gracia, Nancy; Deichmann, Uwe; Lall, Somik.

In: Spatial Economic Analysis, Vol. 5, No. 2, 06.2010, p. 162-179.

Research output: Contribution to journalArticle

Anselin, Luc ; Lozano-Gracia, Nancy ; Deichmann, Uwe ; Lall, Somik. / Valuing access to water-A spatial hedonic approach, with an application to Bangalore, India. In: Spatial Economic Analysis. 2010 ; Vol. 5, No. 2. pp. 162-179.
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