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Explaining Non-Take-up of Water Subsidy

1,* and 2
School of Public Policy, The Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel
Kennedy School of Government, Harvard University, 79 John F. Kennedy Street, Cambridge, MA 02138, USA
Author to whom correspondence should be addressed.
Water 2011, 3(4), 1174-1196;
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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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. View Full-Text
Keywords: water subsidy; take-up; information costs; administrative costs water subsidy; take-up; information costs; administrative costs

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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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