STOP PICKING YOUR POISON: ICERs AS A Framework TO MINIMIZE GHANA’S HYRDO COSTS

Abstract

Ghana has endured a water crisis for decades. Many Ghanaians lack access to clean water, and the water delivery systems currently in use has not fixed the problem. Out of all the types of water that Ghanaians consume, water from piped water systems, bottled water, and sachet water have proven to be some of the more popular and sanitary options. The purpose of this thesis is to determine which of these delivery systems is the most optional water type for Ghana to use. Optimal here translates to which system is the most cost-efficient between its direct financial costs and its indirect health costs. The cost-effectiveness ratio and incremental cost-effectiveness ratio were used to determine the order in which the three delivery systems rank in affordability and cost-effectiveness. The goal of this thesis is to submit a policy recommendation to the Ghanaian federal government urging them to subsidize certain water delivery systems and using the remaining parts of their subsidy and healthcare budget to invest in the other water delivery systems. Doing so would enable Ghanaians to have the most cost-effective water while the government concurrently invests in ways to make other water delivery systems more cost-effective.