Economic analysis of domestic water consumption, sewage water disposal and its health impact

Abstract

We investigate the economic impact of the by-product of rapid urbanization especially focusing on the negative externalities created in the urban ecosystem i.e. contamination of potable water, air pollution, noise pollution, automobile pollution, solid waste and sewage water disposal. Specifically, the domestic water consumption and sewage water disposal are the two variables of interest since these variables have a has a direct bearing on human health but has received scant attention in the literature, so far. Hence, our paper addresses issues like drinking water consumption, quantity disposal of waste water, diseases affected and costs of treatment. Using an intensive field survey, we estimate the loss of opportunity cost for a sample of 140 households. Our result concludes that the provision drinking water and availability of drainage facilities are weakened in the peripheral part of urbanization which associated with high health treatment cost. Moreover, in a slum, even with the proximity of availing these facilities is closer but the socially and economically vulnerable groups are deprived this basic facility. Classification JEL: H52, Q26, Q53