Determinants of the water rate structure choice by Canadian municipalities

Aditya Gurung and Roberto Martinez-Espineira ()

Utilities Policy, 2019, vol. 58, issue C, 89-101

Abstract: We analyze the relationship between local municipal characteristics and their choice of Water Rate Structure (WRS), applying a Multinomial Logit Model (MLM) to the most recently available dataset of Canadian municipal data. The results reveal that, to some extent, local characteristics explain the municipalities' choice of WRS consistent with expectations. However, beyond the effect of determinants that describe the utilities’ operational environment, there remains a degree of variability in tariff setting that likely stems from the balancing of efficiency objectives with considerations of fairness and political acceptability.

Keywords: Water tariffs; Water pricing; Block pricing (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:58:y:2019:i:c:p:89-101

DOI: 10.1016/j.jup.2019.04.003

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