Improving the urban environment in developing countries is now an emerging priority. In that context, valuation is an important source of information to the policy-makers. This paper discusses the application of a multiple choice contingent valuation method to improvements in water supply in Madras, based on a 1996 survey of households in Madras. It is proposed that property rights regimes for the environmental goods concerned can be incorporated into the valuation framework using Sen's entitlements approach. As a step in that direction, a water endowment function has been defined for households in Madras. Issues for policy and research are raised.
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Anand et al. (1999) studied this question.
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