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Periodical article Periodical article
Title:Measuring the Welfare Effects of Reform: Urban Water Supply in Guinea
Authors:Clarke, George R.G.
Menard, Claude
Zuluaga, Ana M.
Periodical:World Development
Geographic term:Guinea
Subjects:Agriculture, Natural Resources and the Environment
Urbanization and Migration
Development and Technology
Politics and Government
water supply
External link:https://doi.org/10.1016/S0305-750X(02)00051-7
Abstract:Reforming public utilities remains high on the agenda of economists and policy-makers. Few studies however have measured the impact of these reforms on welfare. This paper analyzes the radical changes in the arrangement providing water to Conakry (Guinea) and estimates the consequences of that reform on consumers, the government, and the foreign owners involved in the process. It shows that notwithstanding a difficult institutional environment, private sector participation benefited all constituents. It does so using a comparative method, with the actual results compared to a counterfactual scenario. The robustness of our results is supported by sensitivity tests.