In 1990, 30 per cent of Indonesian population had no access to improved drinking water source. Almost 65 per cent lacked access to improved sanitation—and almost 40 per cent defecate in the open. One of the Millennium Development Goals' objectives is to halve these numbers of disadvantaged by 2015. We explore the recent progress using World Health Organization/United Nations Children Fund report and the Indonesia's Socio‐Economic Survey. We conclude that the country still face a great challenge to meet the targets, especially on sanitation. We next illustrate the importance of these facilities by estimating their impact on diarrhoea incidence. We find that the relative importance of sanitation is higher than that of water. A household with ‘unimproved’ drinking water source is about 12 per cent more likely to have diarrhoea than that otherwise. Lacking of improved sanitation, on the other hand, makes the household member about 23–27 per cent more likely to suffer from it.

This article compares the discrete choice random utility model and the hedonic property value model in estimating the benefits of cleaning up Waukegan Harbor, a Superfund site on the Great Lakes. The study uses survey-based conjoint choice data on housing preferences and market data on housing transactions. The research finds that the benefit estimates for different levels of cleanup are quite comparable between the models. The estimates compare very well with those of some previous studies. The results of the study suggest that tax increment financing by the local government is a feasible option to fund cleanup.

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This article uses latent segmentation analysis to estimate the benefits of contaminant cleanup in Waukegan Harbor, Illinois. Survey responses to attitudinal and perception questions provide significant information about the existence of distinct preference groups. By comparison, the predictive usefulness of demographic covariates is unclear. The expected aggregate willingness-to-pay of Waukegan homeowners for full cleanup is approximately equivalent to a 20% increase in the market value of homes. The aggregate estimate is little affected by the identification of preference clusters. Copyright 2007, Oxford University Press.