Economic Assessment of Sanitation Interventions in Vietnam - WSP

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Economic Assessment of Sanitation Interventions in Vietnam | Annex TablesTABLE A5. METHODOLOGY FOR BENEFIT ESTIMATION (CALCULATIONS, DATA SOURCES, EXPLANATIONS)Impacts included Variable Data sources Specific value/comment1. HEALTH(All calculations are made using disaggregated data inputs on disease and age grouping: 0-4 years, 5-14 years, 15+ years)1.1 Health care savingsCalculation:[Prevalence or incidence XAttribution to poor sanitation X((% seeking outpatient care Xvisits per case X unit cost pervisit (medical and patient)) +(Inpatient admission rate X daysper case X unit cost per day(medical and patient))] XProportion of disease casesaverted1.2 Health morbidity-relatedproductivity gainsCalculation:[Prevalence X Attribution topoor sanitation X Days offproductive activities X Value oftime] X Proportion of diseasecases avertedDiarrheal disease incidence (0-4years)Diarrheal disease incidence (over5 years)Helminthes prevalenceHepatitis A and E incidenceIndirect diseases incidence(malaria, ALRI)Malnutrition prevalenceScabies and trachoma IncidenceAttribution of fecal-oral diseasesto poor sanitationAttribution of helminthes to poorsanitation% disease cases seeking healthcareOutpatient visits per patientInpatient admission rateInpatient days per admissionHealth service unit costsOther patient costs (transport,food)DHSWHO statsGlobal reviewNational health statisticsWHO statisticsUNICEF/WHO statisticsNational health statisticsWHO (Prüss et al. 2002) Value = 88%Global review Value = 100%DHS, ESI household survey,health statisticsHealth facility statistics, ESIhousehold surveyESI household survey% disease cases averted International literature review See Annex B for reviewDays off productive activitiesBasis of time value: GDP percapitaESI household surveyNational economic dataWorld Bank dataAverage product per capita(at sub-national level, whereavailable) – 30% for adults,15% for children1.3 Premature mortality savingsCalculation:[Mortality rate X Attribution topoor sanitation X Value of life]X Proportion of disease casesavertedMortality rate (all diseases) WHO statistics (cross-checked with local stats)Basis of time value: GDP percapitaNational economic dataWorld Bank dataAnnual value of lost productionof working adults (humancapital approach) , from thetime of death until the end of(what would have been) theirproductive lifeDiscount rate for future earnings National governments Cost of capital estimate (8%)Long-term economic growthAssumptionValue-of-statistical-life Developed country studies Adjusted to local purchasingpower by multiplying by GDPper capita differential132Economic Assessment of Sanitation Interventions
Economic Assessment of Sanitation Interventions in Vietnam | Annex TablesTABLE A5. METHODOLOGY FOR BENEFIT ESTIMATION (CALCULATIONS, DATA SOURCES, EXPLANATIONS) (CONTINUED)Impacts included Variable Data sources Specific value/comment1.4 Disability-adjusted lifeyears(DALY) avertedCalculation:DALY = YLD+YLLYLD: discounted disabilitybased on weight and yearsequivalent timeYLL: discounted future yearsof healthy life lostDuration of disability ESI household survey based on average length ofeach diseaseDisability weightingHealthy life expectancyDiscount rate for future diseaseburdensMorbidity and mortality ratesWHO burden of disease projectWHO statisticsNational governments Cost of capital estimate (8%)Various: see 1.1 and 1.3 (above)2. WATER (for household use)(weighted average costs were estimated for each water source and for each household water treatment method)2.1 Household water accesssavingsCalculation:Annual costs X % costsreduced, per water source2.2 Household watertreatment savingsCalculation:(% households treating waterper method X annual cost)X % households who stoptreatingDrinking water sources (%) inwet and dry seasonsAnnual financial cost perhousehold, per water sourceAnnual non-financial cost perhousehold, per water sourceProportion of access costreduction under scenario of100% improved sanitation, perwater sourceProportion of householdstreating their water, by methodFull annual cost per watertreatment methodProportion of householdscurrently treating who stoptreating under scenario of 100%improved sanitationESI household surveyESI household survey; ESImarket surveyESI household surveyESI household survey;assumptionESI household surveyESI household survey; ESImarket surveyESI household survey;assumptionValidated by other nationalstatistics (DHS, SES)As well as stopping to treat,households may switch toan alternative – cheaper –treatment method if the cleanerwater sources enable differentwater purification methods3. ACCESS TIME SAVINGS(weighted average costs estimated for each age category and gender – young children, children and male and female adults)Calculation:% household members usingOD X Time saved per trip dueto private toilet X average tripsper day X value of timeHousehold composition(demographics)Sanitation practice, by agegroupAverage round trip time toaccess site of open defecationAverage number of round tripsto defecation site per dayBasis of time value: GDP percapitaESI household surveyESI household surveyESI household surveyESI household surveyNational economic dataWorld Bank dataFor households moving fromshared to private toilet, accesstime to shared toilets is usedinstead of ODAverage product per capita(at sub-national level, whereavailable) – 30% for adults,15% for childrenwww.wsp.org133
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Economic Assessment ofSanitation In
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Economic Assessment of Sanitation I
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ForewordTarget 10 of the Millennium
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Glossary of TermsBenefit-cost ratio
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AcknowledgmentsThe Economics of San
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V. National Benefits of Improved Sa
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Table 32. Sanitation coverage, and
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Figure 34. What factors were of mos
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Annex Table E1. Level of satisfacti
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Annex Table J1. Site U1 (Dong Thap,
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PopulationSelected Development Indi
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III.Study MethodsThe study methodol
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IV.Local Benefits of Improved Sanit
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VI.Costs of Improved Sanitationand
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Economic Assessment of Sanitation Interventions in Vietnam - WSP

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