Economic benefits available from the provision of improved potable water supplies : a review and assessment of the existing evidence

Economic benefits derived from advances in public health are difficult to determine and encompass many varied areas including time, money and calories saved (the latter relates to food expenditures). The benefits directly related to the improvement of potable water supplies, as outlined in this report, are based on four studies; each of which has calculated benefit in a different manner. These four studies are from East Africa, Mozambique, Lesotho and Korea. Since the economic benefit varies with the type of system and the location, different analytical methods must be employed. For example, in areas where households are collecting water from sources kilometers away, the economic benefit could be assumed to be a saving of time. For households purchasing water from water vendors, it could be a cost savings. Several different water demand models are also included in the report, as well as an explanation of basic economic theory.