The determinants of water connection and water consumption: empirical evidence from a Cambodian household survey

Using cross-sectional household-level data from seven provincial towns and one district in Cambodia, we estimate both an access-to-water network equation and a water demand equation. We find that the connection elasticity with respect to the one-off initial connection fee is -0.39 and the price elasticity of water demand for the connected households lies in a range between -0.5 and -0.4. The policy implication of this research is that development practitioners should consider a connection (rather than a consumption) subsidy scheme, as it would stimulate increased access to clean water among all households, including the poorest.