Researchers have found that the people’s level of happiness is very much higher when they get running water in their homes after payment.
This research has been published online in the recent issue of American Economic Journal.
According to World Health Organization (WHO), nearly one billion people have no source of water nearby and from the remaining six billion people less than half, i.e. about 42%, have running water in their homes.
Researchers have found the importance of water in daily life by working on 845 households in Tangier, Morocco. The occupants of those houses were unable to pay sufficient charges to connect to the city’s water supply.
They found that the people were willing to take out loans and could pay twice the amount of bill for water per month, so that they could get running water and the people who have running water in the households reported high level of well-being and happiness despite living on the bottom-line of finances.
Researchers reported that after taking loans the occupants of the houses with new water connections repaid their loans in less time and none of them were defaulted.
Researchers wrote, “That facilitating access to credit for households to finance lump sum quality-of-life investments can significantly increase welfare, even if those investments do not result in any health or income gains.”
Interestingly, researchers found that the people who got more spare time due to running water in their homes spend more time in community or religious and social activities.
Esther Duflo, the Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics at MIT, 10.1257/pol.4.4.68, “It seems we could improve people’s lives fairly easily,” by providing more homes with water networks. It will add up to social benefits.
This research is good for the poorly developed areas of the world. If they want to improve economy, they must have to start with running water in homes.
Devoto, F., Duflo, E., Dupas, P., Parienté, W., & Pons, V. (2012). Happiness on Tap: Piped Water Adoption in Urban Morocco American Economic Journal: Economic Policy, 4 (4), 68-99 DOI: 10.1257/pol.4.4.68