Increasing access to water services: a cost-recoverable pricing model

Natalie Chun

International Journal of Water Resources Development, 2014, vol. 30, issue 4, 662-679

Abstract: Pricing policies can serve as a low-cost and effective tool for increasing access to water and sanitation services among poor households while allowing the provider to recover costs. An empirical model is applied to contingent-valuation survey data for water services in Cebu, Philippines. Pricing policies that utilizes a low one-time connection fee and differentiates tariffs based on wealth results in a 3 to 9-fold increase in water services access by poor households over the base pricing policy. The results provide evidence that price-discrimination techniques can be important tools toward achieving greater coverage and financial solvency of important services.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:taf:cijwxx:v:30:y:2014:i:4:p:662-679

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DOI: 10.1080/07900627.2014.895926

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