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CAPITAL COSTS OF RURAL WATER SYSTEMS: AN EMPIRICAL APPROACH 1
Author(s) -
Ramamurthy Ganapathi,
Chicoine David L.
Publication year - 1984
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1984.tb04680.x
Subject(s) - subsidy , capital cost , capital (architecture) , business , government (linguistics) , economics , finance , environmental economics , geography , macroeconomics , linguistics , philosophy , archaeology , market economy
In the last two decades the federal government has provided substantial capital to construct rural water distribution systems. Loans at subsidized interest rates and front‐end grants through the Farmers Home Administration have been the main source of this capital. Recent federal policy redirections have reduced substantially the availability of grants and subsidized loans. Because of design and material differences, capital cost estimates from urban systems are not uniformly applicable to rural water services. This study presents an econometric analysis of capital costs, using Illinois rural water system construction contract bids. Cost equations by systems components representing 90 percent of capital costs are estimated. The type of information developed here can be used in initial planning and optimization design models contributing to the efficient provision of rural water services.