The increasing block tariff (IBT) is among the most widely used tariffs by water utilities, particularly in developing countries. This is due in part to the perception that the IBT can effectively target subsidies to low-income households. Combining data on households' socioeconomic status and metered water use, this paper examines the distributional incidence of subsidies delivered through the IBT in Nairobi, Kenya. Contrary to conventional wisdom, we find that high-income residential and nonresidential customers receive a disproportionate share of subsidies and that subsidy targeting is poor even among households with a private metered connection. We also find that stated expenditure on water, a commonly used means of estimating water use, is a poor proxy for metered use and that previous studies on subsidy incidence underestimate the magnitude of the subsidy delivered through water tariffs. These findings have implications for both the design and evaluation of water tariffs in developing countries.
Despite its importance in benefit-cost analyses in the water supply, transportation, and health care sectors, there are relatively few empirical estimates of the value of travel time savings (VTT) in low-income countries, particularly in rural areas. Analysts instead often rely on a textbook "rule of thumb" of valuing time at 50% of prevailing unskilled wage rates, though these benchmarks have little empirical support in these settings. We estimate the value of travel time through the use of a repeated discrete choice stated preference exercise. We asked 325 rural households in Meru County, Kenya to rank two new hypothetical water sources against their current water source. The two new hypothetical sources were described as safe and reliable to use, but varied only in their distance from the household and the price charged per water container. Results from random-parameters logit models imply an average value of travel time of 18 Ksh/hr, and generally support the 50% rule. These models produce the first individual-level VTT estimates reported in a lowincome setting, and indicate statistically-significant heterogeneity in VTTs, though the heterogeneity is not well correlated with observables. A latent-class approach identifies four classes of respondents: one class (about one third of respondents) values time very highly (49 Ksh/hr), one poorer group values time hardly at all (less than 1 Ksh/hr), and two groups value time at approximately 9 Ksh/hr.
This paper assesses whether providing people with information on the public benefits of bed net use, and on other people's bed net use, changes their bed net use behavior. I use a survey experiment from rural Kenya, where randomly selected households are provided with information on the public benefits generated by bed net use, and on the consequences of an individual's own bed net use on the health of the immediate neighbor. The results show that information increased willingness to use bed nets, and that people are more willing to use bed nets when they know other people are using them as well. Results are robust to the inclusion of a broad set of controls, including risk aversion; number of household members to have suffered from malaria in the past 12 months; and number of children in the household who are below five years age. Overall, these results suggest that in addition to free distribution of bed nets, informing people on the private and public benefits of bed net use could potentially save many more lives.
To reduce agriculture's carbon, land and water footprint, the diffusion of conservation farming methods is one commonly cited proposition. Yet the process of translating available information on new conservation farming methods into farmers' practices is often a black box in many studies. This understanding is critical to inform strategies for scaling these complex, knowledge-intensive, but necessary practices for improving agriculture's resource and climate balance sheet. By implementing a series of mediation analysis using data from 700 households in Malawi and 930 households in Tanzania, this study examines how an improved understanding of conservation agriculture (CA) principles is an important mediator in the pathway from extension contact to the adoption of two of the CA practices examined. For the adoption of conservation tillage, the share of the mediated treatment effect was in the 31.5–34.4% range, while it was 31.6–46.9% for the adoption of soil cover (mulching). Our results suggest that unless learning from external sources strongly correlates with improved farmers' technical understanding of new farming practices, private learning by doing must be a critical adjunct to other avenues of learning. Beyond the basic promotional goals, improving farmers' technical know-how needs to be the centerpiece of holistic efforts in support of conservation farming and similar knowledge-intensive practices necessary for agriculture's sustinability goals.
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