An economic valuation of water connections under different approaches of service governance

This study investigates how households value different water sources which include in-house and yard connections to water systems. Differentials in the value of in-house and yard connections across governance approaches (municipal, private and community-managed services) are also investigated. The empirical analysis involves estimating hedonic models of stated rental prices for a large sample of urban and rural households in Guatemala. Findings indicate that urban households value municipal and private services. Conversely, urban households do not value piped water when provided by a community-managed system. Rural households seem to be more concerned about the distance of their primary source than about the type of water source.