Economic analysis of HWTS

Introduction to Household Water Treatment and Safe Storage, Module 5.4

Dr. Richard Johnston
Cost benefit analysis
Money for money

Cost effectiveness analysis
Money for DALYs

Willingness to Pay
Money for HWTS


5.4 Cost-effectiveness
Introduction to HWTS| 2
Five interventions
Meeting the Water MDG Target
Meeting the Water and Sanitation MDG Targets
Universal access to basic water and sanitation
Universal basic access + HWTS
Regulated piped water and sewer connections

Benefits
Reduced diarrheal disease
Reduced costs of managing diarrheal disease
Increased productivity from improved health
Time savings


Cost-benefit analysis
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Cost-benefit analysis results
0
5
10
15
20
25
30
35
40
45
50
AMR-B EMR-B EUR-B SEAR-BWPR-B EUR-C EMR-DAMR-DSEAR-D AFR-D AFR-E
B
e
n
e
f
i
t
-
C
o
s
t

r
a
t
i
o

Water and Sanitation MDGs
Universal basic
Universal basic + HWTS
Water MDG
Regulated
Hutton, Haller, & Bartram, 2007. Global cost-benefit analysis of water supply and sanitation interventions. Journal of Water and Health.
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The intervention which is
consistently the most cost-effective
across regions and would be
classified as very cost-effective in all
areas where it was evaluated was
the provision of disinfection capacity
at point of use. On purely cost-
effectiveness grounds it would be
the first choice where resources are
scarce.
Cost-effectiveness analysis
Source: World Health Report 2002, page 128
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Chlorine, SODIS lowest cost
Filters, flocculation/disinfection more
expensive than source
improvements



Another cost-effectiveness analysis
Source: (Clasen et al. 2007)
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Chlorine, SODIS lowest cost
Filters, flocculation/disinfection more
expensive than source
improvements

Cost per DALY averted quite low
<< GDP per capita



Another cost-effectiveness analysis
Source: (Clasen et al. 2007),.
472
1117
142
336
123
143
61
144
53
125
0
200
400
600
800
1000
1200
AFR-E SEAR-D
G
r
o
s
s

A
n
n
u
a
l

C
o
s
t

(
$
)

p
e
r

D
A
L
Y

a
v
e
r
t
e
d

Coagulation/flocculation
Filtration
Source
SODIS
Chlorination
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Bangladesh study
Luoto et al. 2012
2-month free trials of four HWTS
options in rotation
WaterGuard liquid chlorine
Aquatabs chlorine tablets
PuR flocculant disinfectant
Crystal Pur ceramic candle filter

Bidding auction methodology

Very low willingness to pay
Willingness to pay
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Cost benefit analysis

Cost effectiveness analysis

Willingness to Pay
Conclusion
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