| Abstract: |
We study the demand for household water connections in urban Morocco, and the
effect of such connections on household welfare. In the northern city of
Tangiers, among homeowners without a private connection to the city’s water
grid, a random subset was offered a simplified procedure to purchase a
household connection on credit (at a zero percent interest rate). Take-up was
high, at 69%. Because all households in our sample had access to the water
grid through free public taps (often located fairly close to their homes),
household connections did not lead to any improvement in the quality of the
water households consumed; and despite significant increase in the quantity of
water consumed, we find no change in the incidence of waterborne illnesses.
Nevertheless, we find that households are willing to pay a substantial amount
of money to have a private tap at home. Being connected generates important
time gains, which are used for leisure and social activities, rather than
productive activities. Because water is often a source of tension between
households, household connections improve social integration and reduce
conflict. Overall, within 6 months, self-reported well-being improved
substantially among households in the treatment group, despite the financial
cost of the connection. Our results suggest that facilitating access to credit
for households to finance lump sum quality-of-life investments can
significantly increase welfare, even if those investments do not result in
income or health gains. |