Preferences, inequity and entitlements: some issues from a CVM study of water supply in Madras, India
Improving the urban environment in developing countries is now an emerging priority. In that context, valuation is an important source of information to the policy-makers. This paper discusses the application of a multiple choice contingent valuation method to improvements in water supply in Madras, based on a 1996 survey of households in Madras. It is proposed that property rights regimes for the environmental goods concerned can be incorporated into the valuation framework using Sen's entitlements approach. As a step in that direction, a water endowment function has been defined for households in Madras. Issues for policy and research are raised. Copyright © 1999 John Wiley & Sons, Ltd.
[1] A drought application is described by deriving the exact distributions of the sum X + Y and the ratio X/(X + Y) and the corresponding moment properties when X and Y are drought duration and nondrought duration, respectively. The values of X and Y are modeled by a bivariate gamma distribution. Drought data from the State of Nebraska are used.