Happiness on Tap: Piped Water Adoption in Urban Morocco

Connecting private dwellings to the water main is expensive and typically cannot be publicly financed. We show that households' willingness to pay for a private connection is high when it can be purchased on credit, not because a connection improves health but because it increases the time avai...

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Bibliographic Details
Main Authors: Devoto, Florencia, Duflo, Esther, Dupas, Pascaline, Pariente, William, Pons, Vincent
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: American Economic Association 2013
Online Access:http://hdl.handle.net/1721.1/76281
https://orcid.org/0000-0001-6105-617X
Description
Summary:Connecting private dwellings to the water main is expensive and typically cannot be publicly financed. We show that households' willingness to pay for a private connection is high when it can be purchased on credit, not because a connection improves health but because it increases the time available for leisure and reduces inter- and intra-household conflicts on water matters, leading to sustained improvements in well-being. Our results suggest that facilitating access to credit for households to finance lump sum quality-oflife investments can significantly increase welfare, even if those investments do not result in any health or income gains. (JEL D12, I31, O12, O13, O18, Q25)