development economics lecture 14 – april 24, 2007webfac/emiguel/e270c_s07/lecture14.pdf · human...
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Econ
omic
s 27
0cD
evel
opm
ent E
cono
mic
s
Lect
ure
14 –
Apr
il 24
, 200
7
Eco
nom
ics
270c
: Lec
ture
14
2
Lect
ure
1: G
loba
l pat
tern
s of
eco
nom
ic g
row
th a
nd d
evel
opm
ent (
1/16
)
The
polit
ical
eco
nom
y of
dev
elop
men
tLe
ctur
e 2:
Ineq
ualit
y an
d gr
owth
(1/2
3)Le
ctur
e 3:
Cor
rupt
ion
(1/3
0) –
Gue
st le
ctur
e by
Ben
Olk
enLe
ctur
e 4:
His
tory
and
inst
itutio
ns (2
/6)
Lect
ure
5: D
emoc
racy
and
dev
elop
men
t (2/
13)
Lect
ure
6: E
thni
c an
d so
cial
div
isio
ns (2
/20)
Lect
ure
7: E
cono
mic
The
orie
s of
Con
flict
(2/2
7)Le
ctur
e 8:
War
and
Eco
nom
ic D
evel
opm
ent (
3/6)
Hum
an re
sour
ces
Lect
ure
9: H
uman
cap
ital a
nd in
com
e gr
owth
(4/3
)Le
ctur
e 10
: Inc
reas
ing
hum
an c
apita
l (4/
10)
Lect
ure
11: H
ealth
and
nut
ritio
n (3
/13)
Lect
ure
12: T
he E
cono
mic
s of
HIV
/AID
S (3
/20)
Lect
ure
13: L
abor
mar
kets
and
mig
ratio
n (4
/17)
Lect
ure
14: E
nviro
nmen
t and
dev
elop
men
t (4/
24)
Lect
ure
15: S
ocia
l Lea
rnin
g an
d Te
chno
logy
Ado
ptio
n (5
/1)
Eco
nom
ics
270c
: Lec
ture
14
3
•I w
ill p
ass
back
gra
ded
prob
lem
set
#1’
s at
the
end
of
clas
s to
day
•P
robl
em s
et #
2 is
due
at t
he e
nd o
f cla
ss to
day
•La
st le
ctur
e ne
xt T
uesd
ay M
ay 1
st–
beer
and
piz
za a
t La
Val
lsaf
ter c
lass
(5:3
0pm
)
•Fi
nal e
xam
in c
lass
on
Tues
day
May
8th
(3:3
0pm
)
Eco
nom
ics
270c
: Lec
ture
14
4
Eco
nom
ics
270c
: Lec
ture
14
5
(1) E
nviro
nmen
t and
eco
nom
ic d
evel
opm
ent
(2) P
ollu
tion
and
heal
th o
utco
mes
: air
pollu
tion
(Jay
acha
ndra
n20
06)
(3) T
he p
oliti
cal e
cono
my
of w
ater
usa
ge (D
uflo
and
Pan
de20
06)
(4) W
ater
qua
lity,
hea
lth, a
nd th
e va
luat
ion
of
envi
ronm
enta
l am
eniti
es (K
rem
er e
t al.
2007
)(5
) Doe
s ec
onom
ic d
evel
opm
ent l
ead
to e
nviro
nmen
tal
degr
adat
ion?
(Fos
ter a
nd R
osen
zwei
g20
03)
(6) C
limat
e ch
ange
and
eco
nom
ic d
evel
opm
ent
Lect
ure
14 o
utlin
e
Eco
nom
ics
270c
: Lec
ture
14
6
(1) E
nviro
nmen
t and
dev
elop
men
t•
Wha
t is
the
impa
ct o
f env
ironm
enta
l pol
lutio
n (a
ir, w
ater
) on
hea
lth a
nd o
ther
out
com
es?
•W
ho lo
ses
the
mos
t fro
m p
ollu
tion?
Can
wea
lthy
(or
educ
ated
) peo
ple
shie
ld th
emse
lves
?•
Wha
t are
the
dist
ribut
iona
l im
pact
s of
larg
e-sc
ale
envi
ronm
enta
l cha
nges
dur
ing
the
cour
se o
f eco
nom
ic
deve
lopm
ent m
ore
gene
rally
?•
Wha
t is
the
best
way
to p
rovi
de c
lean
wat
er to
rura
l ho
useh
olds
? H
ow m
uch
do th
ey v
alue
cle
an w
ater
?
Eco
nom
ics
270c
: Lec
ture
14
7
(1) E
nviro
nmen
t and
dev
elop
men
t•
Wha
t is
the
impa
ct o
f env
ironm
enta
l pol
lutio
n (a
ir, w
ater
) on
hea
lth a
nd o
ther
out
com
es?
•W
ho lo
ses
the
mos
t fro
m p
ollu
tion?
Can
wea
lthy
(or
educ
ated
) peo
ple
shie
ld th
emse
lves
?•
Wha
t are
the
dist
ribut
iona
l im
pact
s of
larg
e-sc
ale
envi
ronm
enta
l cha
nges
dur
ing
the
cour
se o
f eco
nom
ic
deve
lopm
ent m
ore
gene
rally
?•
Wha
t is
the
best
way
to p
rovi
de c
lean
wat
er to
rura
l ho
useh
olds
? H
ow m
uch
do th
ey v
alue
cle
an w
ater
?•
Sho
uld
we
expe
ct e
cono
mic
gro
wth
to le
ad to
the
dete
riora
tion
of e
nviro
nmen
tal r
esou
rces
, or m
ost
inve
stm
ent i
n su
ch re
sour
ces?
•H
ow w
ill c
limat
e ch
ange
affe
ct e
cono
mic
dev
elop
men
t?
Eco
nom
ics
270c
: Lec
ture
14
8
(1) E
nviro
nmen
t and
dev
elop
men
t•
Why
is s
tudy
ing
the
envi
ronm
ent a
ny d
iffer
ent f
rom
st
udyi
ng o
ther
reso
urce
s?
•E
xter
nalit
ies
and
spill
over
s ar
e ce
ntra
l to
unde
rsta
ndin
g en
viro
nmen
tal i
ssue
s (e
.g.,
pollu
tion
in C
hina
)
Eco
nom
ics
270c
: Lec
ture
14
9
(1) E
nviro
nmen
t and
dev
elop
men
t•
Why
is s
tudy
ing
the
envi
ronm
ent a
ny d
iffer
ent f
rom
st
udyi
ng o
ther
reso
urce
s?
•E
xter
nalit
ies
and
spill
over
s ar
e ce
ntra
l to
unde
rsta
ndin
g en
viro
nmen
tal i
ssue
s (e
.g.,
pollu
tion
in C
hina
)
•In
form
atio
n as
ymm
etrie
s ar
e of
ten
seve
re (e
.g.,
arse
nic
pois
onin
g in
Ban
glad
eshi
gro
und
wat
er)
•Th
e po
ssib
ility
of e
xtin
ctio
n of
ani
mal
and
pla
nt s
peci
es
coul
d be
ext
rem
ely
cost
ly (e
.g.,
for f
utur
e ph
arm
aceu
tical
de
velo
pmen
t) in
terg
ener
atio
nal c
once
rns
Eco
nom
ics
270c
: Lec
ture
14
10
(2) J
ayac
hand
ran
(200
6)•
Ther
e w
ere
mas
sive
wild
fires
(set
off
by c
omm
erci
al
logg
ing
com
pani
es) i
n In
done
sia
in la
te 1
997
•Th
e fir
e fo
llow
ed s
ever
al m
onth
s of
abn
orm
ally
low
ra
infa
ll in
an
El N
iño
year
that
led
to s
trang
e w
eath
er in
m
any
othe
r par
ts o
f wor
ld (d
ry s
easo
n flo
odin
g in
Ken
ya)
Eco
nom
ics
270c
: Lec
ture
14
11
Eco
nom
ics
270c
: Lec
ture
14
12
(2) J
ayac
hand
ran
(200
6)•
Ther
e w
ere
mas
sive
wild
fires
(set
off
by c
omm
erci
al
logg
ing
com
pani
es) i
n In
done
sia
in la
te 1
997
•Th
e fir
e fo
llow
ed s
ever
al m
onth
s of
abn
orm
ally
low
ra
infa
ll in
an
El N
iño
year
that
led
to s
trang
e w
eath
er in
m
any
othe
r par
ts o
f wor
ld (d
ry s
easo
n flo
odin
g in
Ken
ya)
•S
mok
e bl
anke
ted
muc
h of
Indo
nesi
a (a
nd n
eigh
bors
) at
parti
cula
te m
atte
r con
cent
ratio
ns fa
r abo
ve s
afe
leve
ls:
air p
ollu
tion
exce
eded
the
PM
10E
PA
sta
ndar
d of
150
µg
/m3
( not
to b
e ex
ceed
ed m
ore
than
one
day
per
yea
r)
for m
onth
s at
a ti
me
wha
t im
pact
on
infa
nt m
orta
lity?
Eco
nom
ics
270c
: Lec
ture
14
13
Eco
nom
ics
270c
: Lec
ture
14
14
Eco
nom
ics
270c
: Lec
ture
14
15
(2) J
ayac
hand
ran
(200
6)•
Ther
e ar
e no
relia
ble
mor
talit
y re
cord
s in
Indo
nesi
a, b
ut
one
can
use
cens
us d
ata
(col
lect
ed in
200
0) to
cap
ture
“m
issi
ng c
hild
ren”
•Fe
rtilit
y co
uld
also
be
affe
cted
by
the
wild
fires
, but
this
is
less
of a
con
cern
if w
e fo
cus
on w
omen
alre
ady
preg
nant
at
the
star
t of t
he u
nusu
al w
eath
er in
mid
-199
7
Eco
nom
ics
270c
: Lec
ture
14
16
(2) J
ayac
hand
ran
(200
6)•
Ther
e ar
e no
relia
ble
mor
talit
y re
cord
s in
Indo
nesi
a, b
ut
one
can
use
cens
us d
ata
(col
lect
ed in
200
0) to
cap
ture
“m
issi
ng c
hild
ren”
•Fe
rtilit
y co
uld
also
be
affe
cted
by
the
wild
fires
, but
this
is
less
of a
con
cern
if w
e fo
cus
on w
omen
alre
ady
preg
nant
at
the
star
t of t
he u
nusu
al w
eath
er in
mid
-199
7
•Ja
yach
andr
anes
timat
es th
e im
pact
of b
eing
in u
tero
vers
us n
ewly
bor
n at
the
time
of th
e gr
eate
st w
ildfir
es
(Sep
tem
ber t
o N
ovem
ber 1
997)
. The
que
stio
n of
whi
ch
perio
d in
chi
ld d
evel
opm
ent i
s m
ost i
nflu
entia
l (or
whe
re
peop
le a
re m
ost v
ulne
rabl
e) is
of g
ener
al in
tere
st
Eco
nom
ics
270c
: Lec
ture
14
17
Eco
nom
ics
270c
: Lec
ture
14
18
Eco
nom
ics
270c
: Lec
ture
14
19
(2) J
ayac
hand
ran
(200
6)•
One
con
cern
is e
ndog
enou
s m
igra
tion:
she
cap
ture
s pe
ople
whe
re th
ey li
ve in
200
0, b
ut p
erha
ps m
any
hous
ehol
ds w
ith c
hild
ren
fled
from
hig
h sm
oke
area
s du
ring
or a
fter t
he w
ildfir
es
Eco
nom
ics
270c
: Lec
ture
14
20
Eco
nom
ics
270c
: Lec
ture
14
21
(2) J
ayac
hand
ran
(200
6)•
One
con
cern
is e
ndog
enou
s m
igra
tion:
she
cap
ture
s pe
ople
whe
re th
ey li
ve in
200
0, b
ut p
erha
ps m
any
hous
ehol
ds w
ith c
hild
ren
fled
from
hig
h sm
oke
area
s du
ring
or a
fter t
he w
ildfir
es
•H
ouse
hold
s in
poo
r are
as a
re s
igni
fican
tly m
ore
nega
tivel
y af
fect
ed th
an o
ther
s by
the
wild
fires
: air
pollu
tion
seem
s to
hav
e a
very
“reg
ress
ive”
impa
ct
Eco
nom
ics
270c
: Lec
ture
14
22
Eco
nom
ics
270c
: Lec
ture
14
23
Eco
nom
ics
270c
: Lec
ture
14
24
(2) J
ayac
hand
ran
(200
6)•
One
con
cern
is e
ndog
enou
s m
igra
tion:
she
cap
ture
s pe
ople
whe
re th
ey li
ve in
200
0, b
ut p
erha
ps m
any
hous
ehol
ds w
ith c
hild
ren
fled
from
hig
h sm
oke
area
s du
ring
or a
fter t
he w
ildfir
es
•H
ouse
hold
s in
poo
r are
as a
re s
igni
fican
tly m
ore
nega
tivel
y af
fect
ed th
an o
ther
s by
the
wild
fires
: air
pollu
tion
seem
s to
hav
e a
very
“reg
ress
ive”
impa
ct
•16
,000
exc
ess
infa
nt/fe
tald
eath
s.V
alui
ng a
life
at U
S$1
m
illio
n le
ads
to a
val
uatio
n of
US
$16
billi
on (i
gnor
ing
cost
s fo
r sur
vivo
rs).
Tota
l tim
ber a
nd p
alm
oil
indu
stry
re
venu
es p
er y
ear w
as o
nly
US
$7 b
illio
n!
Eco
nom
ics
270c
: Lec
ture
14
25
(3) D
uflo
and
Pan
de(2
007,
QJE
)•
Wat
er re
sour
ces
are
very
hig
h pr
ofile
in In
dia:
usi
ng
dam
s to
sto
re w
ater
faci
litat
es ir
rigat
ion
and
flood
co
ntro
l, bo
ostin
g ag
ricul
tura
l pro
duct
ivity
. --
But
floo
ding
ups
tream
are
a (“
behi
nd”t
he d
am) o
ften
disp
lace
s th
ousa
nds
of h
ouse
hold
s, a
nd p
ossi
bly
ruin
ing
valu
able
env
ironm
enta
l res
ourc
es
Eco
nom
ics
270c
: Lec
ture
14
26
(3) D
uflo
and
Pan
de(2
007,
QJE
)•
Wat
er re
sour
ces
are
very
hig
h pr
ofile
in In
dia:
usi
ng
dam
s to
sto
re w
ater
faci
litat
es ir
rigat
ion
and
flood
co
ntro
l, bo
ostin
g ag
ricul
tura
l pro
duct
ivity
. --
But
floo
ding
ups
tream
are
a (“
behi
nd”t
he d
am) o
ften
disp
lace
s th
ousa
nds
of h
ouse
hold
s, a
nd p
ossi
bly
ruin
ing
valu
able
env
ironm
enta
l res
ourc
es
•Is
ther
e a
trade
-off
betw
een
econ
omic
pro
gres
s (a
gric
ultu
ral p
rodu
ctio
n) a
nd th
e en
viro
nmen
t?
•W
hat a
re th
e di
strib
utio
nal i
mpl
icat
ions
of t
hese
larg
e-sc
ale
dam
pro
ject
s in
Indi
a –
who
win
s an
d lo
ses?
Eco
nom
ics
270c
: Lec
ture
14
27
(3) D
uflo
and
Pan
de(2
007,
QJE
)•
Duf
loan
d P
ande
deve
lop
an in
nova
tive
empi
rical
ap
proa
ch to
est
imat
ing
thes
e ef
fect
s: IV
for d
am lo
catio
n w
ith g
eogr
aphi
c su
itabi
lity,
rela
ted
to th
e sl
ope
of la
nd
•C
ontro
lling
for s
tate
fixe
d ef
fect
s (a
nd ti
me
trend
s) a
nd
loca
l ele
vatio
n co
ntro
ls, t
hey
find
that
cer
tain
in
term
edia
te le
vels
of l
and
“gra
dien
t” in
a d
istri
ct a
re
asso
ciat
ed w
ith m
ore
dam
s be
ing
built
ther
e. T
hey
also
fo
cus
on p
erio
ds w
here
“pro
-dam
” gov
ernm
ents
wer
e in
po
wer
at t
he s
tate
leve
l. Th
is in
tera
ctio
n be
twee
n su
itabi
lity
and
gove
rnm
ent i
s th
eir i
nstru
men
tal v
aria
ble
Eco
nom
ics
270c
: Lec
ture
14
28
Eco
nom
ics
270c
: Lec
ture
14
29
Eco
nom
ics
270c
: Lec
ture
14
30
Eco
nom
ics
270c
: Lec
ture
14
31
Eco
nom
ics
270c
: Lec
ture
14
32
(3) D
uflo
and
Pan
de(2
007,
QJE
)•
Duf
loan
d P
ande
estim
ate
incr
ease
s in
pov
erty
in
dist
ricts
with
dam
s, a
nd re
duct
ions
in p
over
ty in
do
wns
tream
dis
trict
s (w
here
the
dam
is “u
pstre
am”)
. Ta
king
into
acc
ount
the
win
ners
and
lose
rs, o
vera
ll da
ms
do n
otlo
ok li
ke a
ver
y co
st-e
ffect
ive
inve
stm
ent i
n In
dia
Eco
nom
ics
270c
: Lec
ture
14
33
Eco
nom
ics
270c
: Lec
ture
14
34
(3) D
uflo
and
Pan
de(2
007,
QJE
)•
Two
conc
erns
: (i)
the
excl
usio
n re
stric
tion
(ii) e
xter
nalit
ies
(i) Is
the
dist
rict l
and
grad
ient
cor
rela
ted
with
agr
icul
tura
l pr
oduc
tivity
/ ou
tcom
es?
–Th
is is
bas
ical
ly ta
ken
care
of w
ith th
e di
stric
t FE
(ii) A
re b
road
er p
ositi
ve im
pact
s be
ing
left
out o
f the
cos
t-be
nefit
ana
lysi
s?–
Pos
itive
ele
ctric
ity g
ener
atio
n sp
illov
er e
ffect
s m
ay b
e ex
perie
nced
in d
ista
nt d
istri
cts,
and
thes
e ar
e ig
nore
d
Eco
nom
ics
270c
: Lec
ture
14
35
(3) D
uflo
and
Pan
de(2
007,
QJE
)•
Duf
loan
d P
ande
estim
ate
incr
ease
s in
pov
erty
in
dist
ricts
with
dam
s, a
nd re
duct
ions
in p
over
ty in
do
wns
tream
dis
trict
s (w
here
the
dam
is “u
pstre
am”)
. Ta
king
into
acc
ount
the
win
ners
and
lose
rs, o
vera
ll da
ms
do n
otlo
ok li
ke a
ver
y co
st-e
ffect
ive
inve
stm
ent i
n In
dia
•Th
e po
litic
al e
cono
my
punc
h lin
e is
impo
rtant
: eve
n in
th
e ca
se o
f dam
s w
here
win
ners
and
lose
rs o
f a p
olic
y ar
e ea
sy to
iden
tify,
redi
strib
utio
n ty
pica
lly fa
ils to
take
pl
ace
in In
dia.
Sim
ilar e
nviro
nmen
t les
sons
from
Chi
na?
Eco
nom
ics
270c
: Lec
ture
14
36
(3) D
uflo
and
Pan
de(2
007,
QJE
)•
Dis
trict
s w
ith h
igh
ineq
ualit
y la
ndlo
rd h
isto
ries
(Ban
erje
ean
d Iy
er20
05) h
ave
mor
e po
verty
afte
r a d
am is
bui
lt–
Loca
l ins
titut
ions
app
ear t
o be
impo
rtant
•47
% o
f tho
se d
ispl
aced
by
dam
s be
long
to s
ocia
lly
mar
gina
lized
Sch
edul
ed T
ribes
(ST)
–Th
e in
tera
ctio
n ef
fect
of (
DA
MS
)*(S
T) is
sug
gest
ive
–W
hat a
re th
e im
plic
atio
ns fo
r oth
er s
ocia
l gro
ups
in
Indi
a, o
r out
side
of I
ndia
? –
Res
onat
es w
ith J
ayac
hand
ran’
sfin
ding
s ab
out
envi
ronm
enta
l win
ners
and
lose
rs in
Indo
nesi
a
Eco
nom
ics
270c
: Lec
ture
14
37
Eco
nom
ics
270c
: Lec
ture
14
38
(4) K
rem
er e
t al (
2007
)•
The
prov
isio
n of
pip
ed, t
reat
ed w
ater
can
elim
inat
e th
e tra
nsm
issi
on o
f mos
t wat
er-b
orne
dis
ease
, a m
ajor
ca
use
of in
fant
mor
talit
y--
How
ever
, it i
s to
o ex
pens
ive
in m
any
rura
l are
as in
le
ss d
evel
oped
cou
ntrie
s, w
ith lo
w p
opul
atio
n de
nsity
•U
S$1
0 bi
llion
spe
nt a
nnua
lly o
n w
ater
in p
oor c
ount
ries,
m
ostly
on
supp
ly in
frast
ruct
ure
proj
ects
(e.g
., w
ells
)–
Dev
elop
men
t eco
nom
ists
hav
e ha
d re
lativ
ely
little
to
say
abou
t the
rura
l wat
er s
ecto
r unt
il re
cent
ly
•A
rand
omiz
ed e
valu
atio
n of
spr
ing
prot
ectio
n (s
ourc
e w
ater
impr
ovem
ent)
in 1
84 c
omm
uniti
es in
rura
l Ken
ya
Eco
nom
ics
270c
: Lec
ture
14
39
(4) K
rem
er e
t al (
2007
)1)
Doe
s sp
ring
prot
ectio
n su
bsta
ntia
lly im
prov
e so
urce
w
ater
qua
lity?
2) H
ow m
uch
of th
ese
gain
s tra
nsla
te in
to h
ome
wat
er
qual
ity im
prov
emen
ts?
Are
thes
e im
prov
emen
ts la
rger
fo
r hou
seho
lds
with
bet
ter h
ygie
ne p
ract
ices
, san
itatio
n?
3) W
hat a
re th
e ch
ild h
ealth
and
nut
ritio
n im
pact
s of
thes
e w
ater
qua
lity
gain
s?
4) H
ow m
uch
do h
ouse
hold
s va
lue
wat
er q
ualit
y ga
ins?
(H
ow m
uch
do h
ouse
hold
s va
lue
child
hea
lth g
ains
?)
Eco
nom
ics
270c
: Lec
ture
14
40
Var
ious
way
s to
redu
ce d
iarrh
ea•
Env
ironm
enta
l hea
lth h
ardw
are
and
“sof
twar
e”:
–Im
prov
ing
sour
ce w
ater
qua
lity*
–In
crea
sing
wat
er q
uant
ity–
Pro
vidi
ng p
oint
-of-u
se (P
OU
) tre
atm
ent
–S
anita
tion
acce
ss–
Hyg
iene
/han
d w
ashi
ng b
ehav
iora
l cha
nge
•M
edic
al a
ppro
ache
s: o
ral r
ehyd
ratio
n th
erap
y, ro
tavi
rus
vacc
ine,
bre
astfe
edin
g pr
omot
ion,
mic
ronu
trien
t su
pple
men
tatio
n
Eco
nom
ics
270c
: Lec
ture
14
41
Drin
king
wat
er in
rura
l Ken
ya•
Infa
nt m
orta
lity
in K
enya
is h
igh
at 6
8 pe
r 100
0 liv
e bi
rths
(200
1), a
nd e
ven
high
er in
rura
l are
as–
Dia
rrhe
aldi
seas
e is
a le
adin
g ca
use
•In
rura
l are
as p
eopl
e liv
e on
thei
r ow
n fa
rms,
not
in
villa
ges/
tow
ns, m
akin
g pi
ped
wat
er e
xpen
sive
•D
rinki
ng w
ater
is o
ften
from
sou
rces
whe
re it
is e
xpos
ed
to th
e en
viro
nmen
t bef
ore
colle
ctio
n•
Nat
ural
ly o
ccur
ring
sprin
gs
•S
hallo
w w
ells
Eco
nom
ics
270c
: Lec
ture
14
42
Spr
ing
“pro
tect
ion”
•P
rote
ctin
g a
sprin
g in
volv
es: e
xcav
atin
g th
e “e
ye” o
f the
sp
ring,
inst
allin
g pi
pes
for t
he w
ater
, and
con
cret
e ca
sing
fo
r pro
tect
ion
and
drai
nage
•P
rote
ctio
n do
es n
ot p
reve
nt a
ll co
ntam
inat
ion
at th
e so
urce
(i.e
., gr
ound
wat
er c
onta
min
atio
n)•
Con
tam
inat
ion
in tr
ansp
ort,
stor
age
still
pos
sibl
e
•A
naly
tical
ly c
onve
nien
t: sp
ring
prot
ectio
n im
prov
es w
ater
qu
ality
with
out c
hang
ing
quan
tity
Eco
nom
ics
270c
: Lec
ture
14
43
Eco
nom
ics
270c
: Lec
ture
14
44
Eco
nom
ics
270c
: Lec
ture
14
45
(4) K
rem
er e
t al (
2007
)•
200
natu
ral s
prin
gs id
entif
ied
in 2
004
–S
prin
gs s
tratif
ied
by b
asel
ine
wat
er c
onta
min
atio
n,
divi
ded
into
four
trea
tmen
t gro
ups
–16
spr
ings
late
r dro
pped
as
unsu
itabl
e fo
r pro
tect
ion
(e.g
., se
ason
al w
ater
onl
y)–
Ord
er o
f pro
tect
ion
dete
rmin
ed ra
ndom
ly
•A
cros
s th
ree
surv
ey ro
unds
(200
4, 2
005,
200
6), t
here
ar
e 17
5 sp
rings
with
com
plet
e w
ater
and
hou
seho
ld d
ata
•O
ne q
uarte
r of b
asel
ine
sam
ple
phas
ed in
to s
prin
g pr
otec
tion
in e
arly
200
5, o
ne q
uarte
r in
late
200
5
Eco
nom
ics
270c
: Lec
ture
14
46
Wat
er q
ualit
y da
ta•
Wat
er q
ualit
y da
ta c
olle
cted
at t
he s
prin
g an
d at
hom
es,
both
bef
ore
and
afte
r spr
ing
prot
ectio
n–
Mea
sure
con
tam
inat
ion
with
feca
l ind
icat
or b
acte
ria
E. c
oli
–U
.S. E
PA
wat
er q
ualit
y st
anda
rds:
•D
rinki
ng (
E. c
oliC
FU/1
00m
l = 0
)•
Sw
imm
ing
(E. c
oliC
FU/1
00m
l < 1
00)
Eco
nom
ics
270c
: Lec
ture
14
47
(4) K
rem
er e
t al (
2007
)•
Ran
dom
izat
ion
prod
uced
sim
ilar t
reat
men
t and
co
mpa
rison
gro
ups,
in w
ater
qua
lity
and
hous
ehol
d ch
arac
teris
tics
(Tab
le 1
)
•S
ourc
e w
ater
con
tam
inat
ion
fell
72-7
7% a
fter t
reat
men
t (T
able
s 2
and
3), a
nd g
ains
wer
e es
peci
ally
larg
e fo
r m
ore
cont
amin
ated
spr
ings
(Fig
ure
3)
Eco
nom
ics
270c
: Lec
ture
14
48
Eco
nom
ics
270c
: Lec
ture
14
49
(4) K
rem
er e
t al (
2007
)•
Ran
dom
izat
ion
prod
uced
sim
ilar t
reat
men
t and
co
mpa
rison
gro
ups,
in w
ater
qua
lity
and
hous
ehol
d ch
arac
teris
tics
(Tab
le 1
)
•S
ourc
e w
ater
con
tam
inat
ion
fell
72-7
7% a
fter t
reat
men
t (T
able
s 2
and
3), a
nd g
ains
wer
e es
peci
ally
larg
e fo
r m
ore
cont
amin
ated
spr
ings
(Fig
ure
3)
•P
rote
ctio
n le
ads
hous
ehol
ds to
incr
easi
ngly
use
the
prot
ecte
d sa
mpl
e sp
ring
(Tab
le 4
)
Eco
nom
ics
270c
: Lec
ture
14
50
A s
impl
e m
odel
of w
ater
sou
rce
choi
ce•
Hou
seho
lds
trade
-off
wat
er q
ualit
y vs
. tra
vel t
ime
•Th
e w
alki
ng d
ista
nce
to a
sou
rce
is D
and
the
mon
etar
y va
lue
of ti
me
is C
> 0
•V
(W)c
aptu
res
the
heal
th (a
nd n
on-h
ealth
) im
pact
s of
w
ater
con
tam
inat
ion
leve
l W, w
here
V′<
0
•A
hou
seho
ld c
hoos
es to
use
the
sprin
g (“
s”) r
athe
r tha
n th
e al
tern
ativ
e so
urce
(“a”
) if:
{V(W
s)–
CD
s}–
{V(W
a) –
CD
a}≥
0
Eco
nom
ics
270c
: Lec
ture
14
51
(4) K
rem
er e
t al (
2007
)•
Hom
e w
ater
qua
lity
gain
s ar
e la
rger
for s
ole
sour
ce
user
s th
an fo
r mul
ti-so
urce
use
r hou
seho
lds
(Tab
le 5
)
•N
o in
tera
ctio
n ef
fect
s of
spr
ing
prot
ectio
n w
ith b
asel
ine
hygi
ene,
san
itatio
n m
easu
res
(Tab
le 6
)
•Fo
cusi
ng o
n so
le s
ourc
e us
ers
(who
ove
rwhe
lmin
gly
use
the
sprin
g th
roug
hout
), an
IV a
ppro
ach
indi
cate
s w
ater
re
cont
amin
atio
n be
twee
n so
urce
and
the
hom
e is
sm
alle
r tha
n is
ofte
n cl
aim
ed (T
able
7)
Eco
nom
ics
270c
: Lec
ture
14
52
Eco
nom
ics
270c
: Lec
ture
14
53
(4) K
rem
er e
t al (
2007
)•
No
stat
istic
ally
sig
nific
ant i
mpa
cts
on c
hild
dia
rrhe
a,
wei
ght o
r hei
ght a
fter 1
8 m
onth
s–
This
hol
ds a
lso
for t
he s
ole-
sour
ce u
sers
hou
seho
lds,
w
ho s
how
ed th
e la
rges
t hom
e w
ater
qua
lity
gain
s
•S
tatis
tical
pre
cisi
on is
a p
ossi
ble
conc
ern.
Stil
l we
can
reje
ct m
oder
ate
gain
s –
wei
ght g
ains
>0.
72 k
g an
d he
ight
gai
ns >
0.53
cm
–w
ith 9
0% c
onfid
ence
am
ong
sole
-sou
rce
user
hou
seho
lds
Eco
nom
ics
270c
: Lec
ture
14
54
Eco
nom
ics
270c
: Lec
ture
14
55
(4) K
rem
er e
t al (
2007
)•
Spr
ing
prot
ectio
n le
d to
larg
e so
urce
wat
er q
ualit
y ga
ins
(72-
77%
redu
ctio
n in
con
tam
inat
ion)
. The
se tr
ansl
ate
into
mod
erat
e ho
me
gain
s fo
r sol
e so
urce
spr
ing
user
s
•H
ome
wat
er q
ualit
y im
pact
s w
ere
no la
rger
for
hous
ehol
ds w
ith b
ette
r hyg
iene
or s
anita
tion
•N
o ev
iden
ce (a
fter 1
8 m
onth
s) o
f any
siz
eabl
e ch
ild
heal
th o
r nut
ritio
n ga
ins
from
spr
ing
prot
ectio
n
•M
oder
ate
hous
ehol
d va
luat
ion
for s
prin
g pr
otec
tion
is
cons
iste
nt w
ith h
ouse
hold
s le
arni
ng th
at c
hild
hea
lth
gain
s ar
e no
n-ex
iste
nt
Eco
nom
ics
270c
: Lec
ture
14
56
(5) F
oste
r and
Ros
enzw
eig
(200
3)•
Doe
s ec
onom
ic g
row
th le
ad to
def
ores
tatio
n? T
he c
ross
-co
untry
evi
denc
e is
unc
lear
•Th
ese
auth
ors
argu
e th
at lo
cal e
cono
mic
gro
wth
, by
boos
ting
the
dem
and
for f
ores
t pro
duct
s / t
he p
rice
of
fuel
, can
incr
ease
fore
st c
over
rath
er th
an d
ecre
ase
it
•E
vide
nce
from
the
U.S
. his
toric
ally
and
Indi
a re
cent
ly a
re
cons
iste
nt w
ith th
e vi
ew th
at e
cono
mic
gro
wth
cou
ld
prom
ote
affo
rest
atio
n
Eco
nom
ics
270c
: Lec
ture
14
57
Eco
nom
ics
270c
: Lec
ture
14
58
Eco
nom
ics
270c
: Lec
ture
14
59
Eco
nom
ics
270c
: Lec
ture
14
60
Eco
nom
ics
270c
: Lec
ture
14
61
Eco
nom
ics
270c
: Lec
ture
14
62
Eco
nom
ics
270c
: Lec
ture
14
63
(5) F
oste
r and
Ros
enzw
eig
(200
3)•
Inst
itutio
ns m
atte
r her
e: c
omm
on p
ool /
ove
rfish
ing
prob
lem
s co
uld
be im
porta
nt in
the
abse
nce
of s
trong
go
vern
men
t aut
horit
ies
able
to d
efin
e an
d en
forc
e pr
ivat
e pr
oper
ty ri
ghts
•P
artic
ular
fore
sts
may
hav
e in
trins
ic v
alue
(Yos
emite
), or
ra
re s
peci
es n
ear e
xtin
ctio
n
Eco
nom
ics
270c
: Lec
ture
14
64
Eco
nom
ics
270c
: Lec
ture
14
65
(6) C
limat
e ch
ange
and
dev
elop
men
t•
Glo
bal c
limat
e ch
ange
will
shi
ft ar
ound
cur
rent
pat
tern
s of
rain
fall
and
tem
pera
ture
. Som
e ar
eas
will
bec
ome
hotte
r (dr
ier)
and
oth
ers
cool
er (w
ette
r)
•C
urre
nt p
redi
ctio
ns in
dica
te th
at s
ever
al L
DC
regi
ons
coul
d be
adv
erse
ly a
ffect
ed: W
est A
frica
will
bec
ome
incr
easi
ngly
hot
and
dry
. Ban
glad
esh
may
suf
fer m
ore
frequ
ent f
lood
s
•Fu
ture
wor
k co
uld
inte
grat
e th
ese
clim
ate
pred
ictio
ns
with
exi
stin
g m
odel
s to
sim
ulat
e fu
ture
eco
nom
ic
traje
ctor
ies
for d
iffer
ent r
egio
ns /
coun
tries
Eco
nom
ics
270c
: Lec
ture
14
66
Whi
tebo
ard
#1
Eco
nom
ics
270c
: Lec
ture
14
67
Whi
tebo
ard
#2
Eco
nom
ics
270c
: Lec
ture
14
68
Whi
tebo
ard
#3
Eco
nom
ics
270c
: Lec
ture
14
69
Whi
tebo
ard
#4
Eco
nom
ics
270c
: Lec
ture
14
70
Whi
tebo
ard
#5
Eco
nom
ics
270c
: Lec
ture
14
71