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Water 2011, 3(4), 1174-1196; doi:10.3390/w3041174
Article

Explaining Non-Take-up of Water Subsidy

1,*  and 2
1 School of Public Policy, The Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel 2 Kennedy School of Government, Harvard University, 79 John F. Kennedy Street, Cambridge, MA 02138, USA
* Author to whom correspondence should be addressed.
Received: 10 March 2011 / Revised: 9 July 2011 / Accepted: 9 December 2011 / Published: 16 December 2011
(This article belongs to the Special Issue Water Policy)
Download PDF [443 KB, uploaded 16 December 2011]

Abstract

We use two separate quasi-natural experiments to explore the relative importance of information and administrative costs in explaining non-take-up of water subsidy. The first “experiment” shows that the take-up rate of a household with lower administrative costs is not significantly different from otherwise identical households. In contrast, using the same program, the second “experiment” reveals that the take-up rate of a household that is more likely to be informed is substantially higher compared to otherwise identical households. These findings support the idea that information plays a major role in explaining non-take-up of water subsidy.
Keywords: water subsidy; take-up; information costs; administrative costs water subsidy; take-up; information costs; administrative costs
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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MDPI and ACS Style

Dahan, M.; Nisan, U. Explaining Non-Take-up of Water Subsidy. Water 2011, 3, 1174-1196.

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