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Seminar presentation

Thesis state, March 16th, 2010

Bahman Kashi

on 7 February 2013

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Transcript of Seminar presentation

Economic risk associated with a satellite project Satellites' technical risk 10% failure on average
Insured for financial benefits
Economic benefits are not insured Economic Benefits Urban Rural Telecommunication services are mostly available
At it's best, the satellite may slightly reduce the market price Insignificant... Significant An slight reduction in price
Introduction of new markets
Enormous economic benefits Rural Africa Demand Size 1 billion people live in Africa
More than half live in rural areas Economic Value Based on 1000 surveys in Peru and 284 in Bangladesh
Found income and population density as the most significant determinants of WTP Rural income in Africa Who are the poor? World bank poverty line:
Income below $1.08 US per day
(a yearly income of $394.2 US) Important assumption:
Poor's income is $1.08 US per day Who are rural? How to find the rural income? An example; South Africa Population: 50 million
GDP per capita: $10,000 US per year
Urban share: 61%
Poor share: 50%
Poor share of rural: 89%
Rural per capita income: $2,414 US per year Another example; Kenya Population: 40 million
GDP per capita: $1,600 US per year
Urban share: 22%
Poor share: 50%
Poor share of rural: 45%
Rural per capita income: $1,727 US per year Final results Rural population of Africa: 569,120,000
Rural income per capita: $2,144 US per year Africa's WTP for rural telepnony Using the available study Logit and probit models are used for Bangladesh and Peru
Translating the probability back to WTP I'm here! Contingent evaluation
Net economic benefits = WTP - Price
Similar study in Peru and Bangladesh Thank You! On-going research
Bahman Kashi
March 17th, 2010
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