Book contents
- Prioritizing Development
- Prioritizing Development
- Copyright page
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Foreword
- Introduction
- Chapter 1 Benefits and Costs of Air Pollution Targets for the Post-2015 Development Agenda
- Chapter 2 Targets for Biodiversity and Deforestation
- Chapter 3 Benefits and Costs of the Climate Change Targets for the Post-2015 Development Agenda
- Chapter 4 Beyond Civil War
- Chapter 5 Data Revolution
- Chapter 6 Benefits and Costs of the Education Targets for the Post-2015 Development Agenda
- Chapter 7 Benefits and Costs of the Energy Targets for the Post-2015 Development Agenda
- Chapter 8 Benefits and Costs of the IFF Targets for the Post-2015 Development Agenda
- Chapter 9 Benefits and Costs of the Trade Targets for the Post-2015 Development Agenda
- Chapter 10 Benefits and Costs of the Health Targets for the Post-2015 Development Agenda
- Chapter 11 Benefits and Costs of the Noncommunicable Disease Targets for the Post-2015 Development Agenda
- Chapter 12 Benefits and Costs of the Women’s Health Targets for the Post-2015 Development Agenda
- Chapter 13 Benefits and Costs of TB Control for the Post-2015 Development Agenda
- Chapter 14 Benefits and Costs of the Infant Mortality Targets for the Post-2015 Development Agenda
- Chapter 15 Benefits and Costs of the HIV/AIDS Targets for the Post-2015 Development Agenda
- Chapter 16 Benefits and Costs of the Malaria Targets for the Post-2015 Consensus Project
- Chapter 17 Benefits and Costs of Digital Technology
- Chapter 18 Returns to Investment in Reducing Postharvest Food Losses and Increasing Agricultural Productivity Growth
- Chapter 19 Benefits and Costs of the Gender Equality Targets for the Post-2015 Development Agenda
- Chapter 20 Benefits and Costs of the Food and Nutrition Targets for the Post-2015 Development Agenda
- Chapter 21 Benefits and Costs of the Population and Demography Targets for the Post-2015 Development Agenda
- Chapter 22 Benefits and Costs of Two Science and Technology Targets for the Post-2015 Development Agenda
- Chapter 23 Global Benefits and Costs of Achieving Universal Coverage of Basic Water and Sanitation Services as part of the 2030 Agenda for Sustainable Development
- Chapter 24 Benefits and Costs of the Poverty Targets for the Post-2015 Development Agenda
- Chapter 25 Good Governance and the Sustainable Development Goals
- Conclusion
- Index
23.1 - alternative perspective
Published online by Cambridge University Press: 30 May 2018
- Prioritizing Development
- Prioritizing Development
- Copyright page
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Foreword
- Introduction
- Chapter 1 Benefits and Costs of Air Pollution Targets for the Post-2015 Development Agenda
- Chapter 2 Targets for Biodiversity and Deforestation
- Chapter 3 Benefits and Costs of the Climate Change Targets for the Post-2015 Development Agenda
- Chapter 4 Beyond Civil War
- Chapter 5 Data Revolution
- Chapter 6 Benefits and Costs of the Education Targets for the Post-2015 Development Agenda
- Chapter 7 Benefits and Costs of the Energy Targets for the Post-2015 Development Agenda
- Chapter 8 Benefits and Costs of the IFF Targets for the Post-2015 Development Agenda
- Chapter 9 Benefits and Costs of the Trade Targets for the Post-2015 Development Agenda
- Chapter 10 Benefits and Costs of the Health Targets for the Post-2015 Development Agenda
- Chapter 11 Benefits and Costs of the Noncommunicable Disease Targets for the Post-2015 Development Agenda
- Chapter 12 Benefits and Costs of the Women’s Health Targets for the Post-2015 Development Agenda
- Chapter 13 Benefits and Costs of TB Control for the Post-2015 Development Agenda
- Chapter 14 Benefits and Costs of the Infant Mortality Targets for the Post-2015 Development Agenda
- Chapter 15 Benefits and Costs of the HIV/AIDS Targets for the Post-2015 Development Agenda
- Chapter 16 Benefits and Costs of the Malaria Targets for the Post-2015 Consensus Project
- Chapter 17 Benefits and Costs of Digital Technology
- Chapter 18 Returns to Investment in Reducing Postharvest Food Losses and Increasing Agricultural Productivity Growth
- Chapter 19 Benefits and Costs of the Gender Equality Targets for the Post-2015 Development Agenda
- Chapter 20 Benefits and Costs of the Food and Nutrition Targets for the Post-2015 Development Agenda
- Chapter 21 Benefits and Costs of the Population and Demography Targets for the Post-2015 Development Agenda
- Chapter 22 Benefits and Costs of Two Science and Technology Targets for the Post-2015 Development Agenda
- Chapter 23 Global Benefits and Costs of Achieving Universal Coverage of Basic Water and Sanitation Services as part of the 2030 Agenda for Sustainable Development
- Chapter 24 Benefits and Costs of the Poverty Targets for the Post-2015 Development Agenda
- Chapter 25 Good Governance and the Sustainable Development Goals
- Conclusion
- Index
Summary
Summary
Guy Hutton's chapter is part of a series of publications from the WHO and World Bank that suggest the benefits of water and sanitation interventions in developing countries are an order of magnitude or more higher than the costs of improved services. However, I challenge this finding on a number of grounds, particularly related to the assumptions made in the economic analysis.
The benefit-cost analysis rests on two assumptions, that each person's well-being is to count, and count according to their own valuation, and that this is also the valuation placed on the change by society. The challenge is to learn about individuals’ preferences and measure the strength of these in monetary terms, either via the willingness to pay (WTP) for the outcome or the willingness to accept (WTA) compensation to forego the change.
Some experts are reluctant to measure benefits in terms of expressed preferences because they believe that people do not fully understand either the benefit or the causal relationship between hygiene and health. They are thus inclined to substitute their own assessment of the benefits into the benefit-cost calculation, which creates a challenge for BCA. In simple terms, if the benefit-cost ratio of a WASH intervention is 10:1, or even 20:1 as suggested in the chapter, why don't individuals rush to adopt these interventions?
The reasonableness of the benefit estimate depends largely on the accuracy of the estimates of time saving, which is what delivers the greatest benefit. Consider one of the sources of time savings – not walking to an open defecation site. If we assume a rural household of two adults and three children, the monthly benefits estimated in the chapter would be about US$5 per month, but would everyone actually change their behavior? In practice, in rural India, there is evidence that many people prefer to practice open defecation, which means that the benefit in the chapter must be considered highly speculative and subject to a high level of uncertainty.
A similar argument applies to the benefits of avoided mortality. The human capital approach has no theoretical justification; a WTP figure would give a much lower benefit, particularly in poor communities, but some experts are uncomfortable with this. The substitution of expert judgment gives the appearance of greater certainty in the benefit estimates and, in many situations, inflates the economic benefits.
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- Chapter
- Information
- Prioritizing DevelopmentA Cost Benefit Analysis of the United Nations' Sustainable Development Goals, pp. 443Publisher: Cambridge University PressPrint publication year: 2018