Connecting private dwellings to the water main is expensive and typically cannot be publicly financed. We show that households' willingness to pay for a private connection is high when it can be purchased on credit, not because a connection improves health but because it increases the time available for leisure and reduces inter- and intra-household conflicts on water matters, leading to sustained improvements in well-being. Our results suggest that facilitating access to credit for households to finance lump sum quality-oflife investments can significantly increase welfare, even if those investments do not result in any health or income gains.
Devoto, F., Duflo, E., Dupas, P., Parienté, W., & Pons, V. (2012). Happiness on Tap: Piped Water Adoption in Urban Morocco. American Economic Journal: Economic Policy, 4(4), 68-99. https://doi.org/10.1257/pol.4.4.68 (Original work published 2012)