Economic benefits for improving rural sanitation services in the district of Taraco, Puno region

Authors

DOI:

https://doi.org/10.26867/se.2022.v11i1.127

Keywords:

willingness to pay, consumer surplus, social evaluation, contingent valuation method, net present value

Abstract

The Basic rural sanitation services in Peru are a priority for the government, because they improve the quality of life of the rural population. These projects must justify their execution incorporating economic benefits that guarantee their post-investment sustainability. For this purpose, this research considered a survey of 173 heads of families, whose objective is to estimate the economic benefits through the contingent valuation method (CVM) with the referendum format and the consumer surplus method (CS) through the social value of the time and higher consumption. It is shown that families are willingness to pay (WTP) S/. 8.38 per month to access the sanitation service and the economic benefit for the consumer surplus is S/. 46.43 monthly per family. Regarding social evaluation; through the EC the net present value is S/. 856,485, however, for the CVM they would only cover the costs of operation and maintenance. The WTP is mainly conditioned by family income, educational level, gender and the distance to carry water. Therefore, the investment must be assumed by the state, since these projects guarantee their sustainability, mainly covering the costs of operation and maintenance.

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Published

2022-07-31

How to Cite

Parillo-Mamani, W. G. (2022). Economic benefits for improving rural sanitation services in the district of Taraco, Puno region. Semestre Económico, 11(1), 44–53. https://doi.org/10.26867/se.2022.v11i1.127

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Original Articles