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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)
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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 (CC BY 3.0).
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Dahan, M.; Nisan, U. Explaining Non-Take-up of Water Subsidy. Water 2011, 3, 1174-1196.

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