The Next GATE seminar will take place on Monday 20th January, 11am in their seminar room and will feature Thierry Kalisa.
Time is money: a contingent valuation survey applied to rural electrification in Rwanda
This paper’s motivation is to contribute to the growing literature on contingent valuation in developing countries. In a new survey in Rwanda valuing people’s contribution for electrification, a relatively new design is proposed giving the choice to respondents between two scenarios: one in which they would contribute their time and another in which they would contribute their money. Results show that people prefer to contribute in time rather than in money. A great majority of people who have electricity would accept to contribute for the electrification of others. The potential contributors are willing to contribute 37,250 Frw (55 $) and 66 days on average per year for five years. At current wages, the contribution in time is equivalent to 132,000 Frw (196 $), more than three times the money contribution, which means that relying only on the willingness to pay to value a good in a developing country context could lead to underestimate the true contribution of people.