The Impact of Piped Water on Household Welfare:
Evidence from Vietnam

Nguyen Viet Cuong and Vu Thieu

Journal of Environmental Planning and Management, Volume 56, Issue 9, pp. 1332-58


Abstract

Difference-in-differences with matching is a popular method to measure the impact of an intervention in health and social sciences. This method requires baseline data, that is, data before interventions, which are not always available in reality. Instead, panel data with two time periods are often collected after interventions begin. In this paper, a simple matching method is proposed to measure the impact of an intervention using two-period panel data after the intervention. The method is illustrated by the measurement of the effect of health insurance in Vietnam using household panel data.Clean water is essential for human survival. However, a large proportion of people do not have access to clean water in Vietnam. Approximately only 23% of the population had access to piped water in 2006. This study measures the effect of piped water on household welfare using difference-in-differences estimators and panel data from Vietnam Household Living Standard Surveys. It found that the effect of piped water on household income and working efforts are positive, but are small and not statistically significant. Similarly, the effect of piped water on the sickness of household members is negative, but not statistically significant.

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