SOCIAL RETURNS FROM DRINKING WATER, SANITATION AND HYGIENE EDUCATION A Case Study of Two Coastal Villages in Kerala

Abstract

Social returns from investing in water supply, sanitation and
\nhygiene education (WATSANGENE) have been estimated from the
\nUNICEF model of water supply, sanitation and hygiene after modifying
\nit using Sen’s commodities and capabilities approach. The various
\ncharacteristics of the commodity, WATSANGENE, affect significantly
\nthe functioning levels of people with respect to poverty, health, longevity,
\neducation and quality of environment. Among them, education,
\nlongevity and quality of environment have not been evaluated because
\nof the high degree of subjectivity in their measurement leading to wide
\nmargin of errors. Hence, only two of them - poverty and health- have
\nbeen taken up for valuation by case study method and by “with” and
\n“without” project approach. For the case study, two villages from the
\ncoastal belt of Kerala inhabited mainly by fishing community were
\nselected. The study clearly shows that the social benefits are
\nunderestimated if the travel time is valued by shadow wage rate instead
\nof by the value of energy expended. For example, the value of time
\nsaved “with the project” is only 35 % of the value of energy expended
\nfor fetching drinking water from distant sources. In the case of sanitation,
\nit is only 25 % of the value of energy expended. The averted annual
\npublic expenditure per household resulting from the elimination of
\nwater borne and sanitation related illness with the project is Rs.682.
\nThe private annual expenditure per household for treating illness is
\nRs.510. The cost of providing water supply, sanitation and hygiene per
\nhousehold is Rs. 12,086. The ratio of benefit (present value of the
\nrecurring expenditure) to cost is 3.6 in the case of shadow pricing of
\ntravel time and 9 in the case of energy expenditure method. This result
\nsupports strongly that capabilities approach should be used for the
\nvaluation of benefits from water supply, sanitation and hygiene
\neducation. The study shows that provision of WATSANGENE in the
\ncoastal belt qualifies even under commercial borrowing.
\nJEL Classification : H43, I31, I38
\nKey words : social returns, UNICEF model, capabilities and
\nfunctionings, shadow pricing, valuation of energy loss.