Affordability of water supply in Mongolia : empirical lessons for measuring affordability / Erik Gawel; Katja Sigel; Wolfgang Bretschneider. Helmholtz-Zentrum für Umweltforschung - UFZ, Department of Economics
VerfasserGawel, Erik ; Sigel, Katja ; Bretschneider, Wolfgang
ErschienenLeipzig : Helmholtz-Zentrum für Umweltforschung - UFZ, 2011
UmfangOnline-Ressource (PDF-Datei: 28 S., 0,42 MB) : graph. Darst.
SerieUFZ-Diskussionspapiere ; 9/2011
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Affordability of water supply in Mongolia [0.42 mb]
Affordability of water services is a pressing water policy issue for both the developed and in particular the developing world. Despite its well-known theoretical shortcomings affordability analysis for water supply is up to now widely based on the ratio of a household's water expenditure and income (CAR). However in the housing sector alternative concepts of measuring affordability have been developed among them the potential affordability approach (PAA) and the residual income approach (RIA). Against this background the article compares three prominent affordability measures (CAR PAA RIA) on the basis of an empirical case study of a "ger" i.e. low income area in the Mongolian city of Darkhan using household data from a survey conducted in 2009. Thus we gain insight into both the water-related affordability situation of people in Mongolia checking the World Bank's thesis of missing affordability problems in this country as well as the comparative functionality of different affordability measures. Additionally institutional as well as access-driven problems of water supply are introduced into the analysis. It is shown that affordability problems quite occur for considerable parts of the households but have to be distinguished depending on the economic causation: We argue that none of the regarded measures gives a satisfyingly contoured notion of affordability properly distinguished from the adjacent problems of poverty and access. A mere CAR analysis does not provide sound recommendations for water policy at all. In particular problems of access entailing non-pecuniary costs of water provision have to be taken into account and might explain both problems of underconsumption and given CAR-affordability at the same time. -- Affordability ; Mongolia ; water supply ; water access ; potential affordability approach ; residual income approach ; non-pecuniary cost