Cost-effective provision of safe drinking water to households in rural Bangladesh
A key policy unknown is whether and how much to charge households to connect to a pipeline network for drinking water. This brief examines pricing strategies for household water connections in rural Bangladesh to optimise cost-effectiveness.
-
Habib and Tompsett Policy Brief March 2025.pdf
PDF document • 491.68 KB
- This brief explores how to price household water connections to a rural pipeline scheme to optimise cost-effectiveness.
- If the goal is to maximise revenue collection, charging households BDT 1200 is the best strategy. However, many households will not adopt the connection at this price.
- If the goal is to spend government funds most efficiently at the lowest price per connected household, then the best strategy is to provide connections for free due to the efficiency of constructing pipelines that serve many households in a small area. This effect dominates any revenue raised by charging prices to connect households.