Value of water: evaluating the pricelessness of clean, potable water, Pg11

Key Highlights:

• A 2025 study in Odisha directly measured the value of clean water by observing household behavior when provided with home-delivered potable water.
• The study found that Willingness to Pay (WTP) and Willingness to Accept (WTA) for clean water were significantly higher than previous indirect estimates.
• Many households in the study preferred receiving clean water over equivalent cash, highlighting the high value placed on reliable access.
• Access to home-delivered water led to reduced reliance on less reliable sources and decreased collection time for households.

Detailed Insights:

• The study addressed a gap in research by directly measuring how much households value clean, potable water independent of collection time, taste, labor, or irregular access.
• Conducted in Odisha, where only 17% of households had piped water connections as of 2021, the study used a randomized controlled trial across 99 villages.
• Households were assigned to experimental groups: a price arm to determine WTP, a free-water arm as a benchmark, and an exchangeable entitlement arm to reveal WTA.
• The findings indicated that previous studies underestimated the value of potable water due to the inconveniences of collection and treatment.
• The study suggests that governments should support decentralized, home-delivery models and provide subsidies to ensure universal access to safe water.
• By reframing water access as a service rather than technology adoption, the study emphasizes making safe water easy, reliable, and dignified.

Key Concepts Involved:

• Willingness to Pay (WTP): The maximum price a consumer is willing to pay for a good or service.
• Willingness to Accept (WTA): The minimum compensation a consumer is willing to accept to give up a good or service.
• Randomized Controlled Trial: A study design that randomly assigns participants into a control group or experimental group.