Pathfinder: Sanitation Markets

This pathfinder paper was commissioned by SHARE to provide a basis for future research on sanitation economics, defined as the application of economic concepts, approaches and tools to the sanitation sector. Specifically, it investigated how market failures affect the ability to extend appropriate and sustainable sanitation services alongside the entire sanitation value chain. The paper examines in turn three main market segments alongside the sanitation value chain, starting with markets for providing ‘access’ to sanitation (collection services), markets for transport and treatment activities and finally, markets for reuse services. It concludes with recommendations to policy-makers on what to do based on what we know and to researchers on areas for future research in the developing area of ‘sanitation economics’.