GCOE・HSE Special Lecture: Dr. Ibnu Syabri "Measuring the Benefits of Water Access Improvement: A Spatial Hedonic Approach with an Application to Bandung, Indonesia"
Date: August 3, 2009
Venue: Seminar Room 314 (C1), Katsura Campus, Kyoto University
Laboratory of Planning and Management Systems, Department of Urban Management, Graduate School of Engineering, Kyoto University
Kyoto University Global COE Program "Human Security Engineering for Asian Megacities"
Lecturer: Dr. Ibnu Syabri (Institut Teknologi Bandung)
Title: "Measuring the Benefits of Water Access Improvement: A Spatial Hedonic Approach with an Application to Bandung, West Java, Indonesia"
Access to sufficient, safe and affordable water is vital for human development. However, in many developing countries to provide and finance water services in a fair and efficient manner, policy makers have to deal with a decision to be made with full comprehension of both a significant increase in the demand for water, while, at the same time, addressing the backlog of investments. This paper describes the development of an analytical model representing the estimate of benefits from infrastructure investments. A spatial-econometric hedonic water price model is estimated for the Bandung Metropolitan Area to measure the marginal value of improved clean water access. Validity findings include significant scope sensitivity in WTP for water services. Further, results indicate that households are willing to pay from 2.1% to 8.1% of reported household income above their current water bill for safe and reliable drinking water services, depending upon the assumptions about response uncertainty.