Providing clean water to rural villages: a cost-effectiveness analysis of boreholes versus purification sachets Online publication date: Thu, 26-Jan-2023
by Anna-Maria Aksan; Kaitlyn Aussenheimer; Margaret Williams
International Journal of Social Entrepreneurship and Innovation (IJSEI), Vol. 6, No. 2, 2022
Abstract: Clean, reliable water access remains a challenge in rural communities throughout the developing world. A number of alternatives are available for combating infrastructure shortfalls, ranging from water purification methods to infrastructure developments such as drilling of boreholes. We apply economic valuation methods to compare two such options for providing clean water to rural communities in various countries. Cost-benefit and cost-effectiveness analyses demonstrate the benefits relative to the costs of providing clean water by drilling boreholes versus using water purification sachets. We compare short-run and long-run costs and value the health benefits of clean water to demonstrate a lower incremental cost effectiveness ratio for boreholes. We also value the difference in time spent collecting water and calculate the internal rate of return for borehole installation. The social return on investing in boreholes is high across all settings analysed.
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