Does piped water improve the welfare of poor households?

Dian Rarassanti, Alin Halimatussadiah, Fithra Faisal Hastiadi, Pyan Putro S.A. Muchtar

Research output: Contribution to journalArticlepeer-review

Abstract

The use of improved water sources could affect households’ welfare in the form of better health quality. The number of households that have access to piped water, an acknowledged type of improved drinking water sources, is very low in Indonesia due to low investment in water infrastructure. For poor households, access to piped water is essential as the ability to pay for other kinds of clean water is weak. This study aims to examine the impact of the use of piped water on households’ welfare by looking at the difference between the welfare score of households that are connected to piped water and that of those who are not. The two groups are selected using Propensity Score Matching (PSM) method. The study employs Central Bureau of Statistics household survey data in South Tangerang City, Banten Province. The result shows that the welfare of piped water consumers is significantly higher than the non-consumers. To expand the program, we recommend that the government should put more effort to make drinking water with pipeline distribution system more accessible to poor households by subsidizing them.

Original languageEnglish
Pages (from-to)119-134
Number of pages16
JournalEconomics and Policy of Energy and the Environment
Volume2016
Issue number3
DOIs
Publication statusPublished - 1 Jan 2016

Keywords

  • Household welfare
  • Piped water
  • Propensity Score Matching (PSM)

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