Quantifying welfare effects in the presence of externalities
An ex-ante evaluation of sanitation interventions
Bibliographic Data
| ID | 11889779 |
|---|---|
| Authors | Sanghmitra Gautam (Washington University in St. Louis, corresponding author) |
| Year | 2023 |
| Volume | 164 |
| Pages | 103083-103083 |
| Publication date | 2023-03-26 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Development Economics (JOURNAL) |
| Journal identifiers | ISSN: 0304-3878 • E-ISSN: 1872-6089 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.jdeveco.2023.103083 |
| OpenAlex | W4360960435 |
| Language | EN |
| Citations received | 8 |
| References cited | 29 |
This paper analyzes the impact of externalities on household demand for sanitation and the subsequent welfare effects generated from policy interventions. A critical feature of household sanitation (e.g., toilets) is that the take-up generates externalities where the privately chosen level is less than the socially optimal. To analyze the impact of policy interventions, I explicitly model household choice, taking into account the interdependence of household decision-making within the village. I identify and estimate the model using micro-survey data from India. Using the estimated model, I show how untargeted price subsidies , although cost effective at increasing sanitation coverage, have a regressive effect. I contrast this policy response with a targeted cash transfer to households with children, which ameliorates the regressive impact at the expense of a lower take-up
Cash · Cash transfers · Economics · Ex-ante · Externality · Macroeconomics · Microeconomics · Psychological intervention · Public economics · Sanitation · Subsidy · Survey data collection · Welfare · Child Nutrition and Water Access · Economic and Environmental Valuation · Water resources management and optimization
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| Citations per year | 2.67 |
|---|---|
| Citation span | 2023 - 2026 (4) |
| Highly cited | No |