Water Resources Research · Nov 12, 2011
Researcher
Description
Investigated 3 alternative financing methods for low-resource rural communities wishing to finance water service improvements. A discrete choice experiment, conducted in a rural catchment of Zambia,
compares conventional cash-based WTP for different water service attributes with two
alternative measures. (1) Willingness to borrow: Monthly payments in cash, with a no-interest
loan given to the user. (2) Willingness to work: Instead of cash, payment in the form of
contributing time devoted to unskilled labor. To different degrees, these alternatives elicit
higher demand and enable cost recovery, providing evidence that demand-driven, economically
sustainable water development efforts, as described here for Simango, Zambia, may be
implemented for rural, resource-poor communities.
compares conventional cash-based WTP for different water service attributes with two
alternative measures. (1) Willingness to borrow: Monthly payments in cash, with a no-interest
loan given to the user. (2) Willingness to work: Instead of cash, payment in the form of
contributing time devoted to unskilled labor. To different degrees, these alternatives elicit
higher demand and enable cost recovery, providing evidence that demand-driven, economically
sustainable water development efforts, as described here for Simango, Zambia, may be
implemented for rural, resource-poor communities.