Management of water services: An economic valuation from urban Guatemala

This paper investigates the value that urban households assign to municipal, private, and community-managed water services in Guatemala through hedonic analysis of imputed and observed rental prices. Findings indicate that the value of piped water depends on the type of water utility. The estimated value of municipal services is 15 times as much as the average water bill. Value estimates are non-negative for private services, and non-positive for community-managed systems. Results also suggest that, compared to renters, home owners tend to overstate the value of water services. Value differentials are discussed considering the performance of water utilities and their institutional arrangements.