Thirsty Colonias: Rate Regulation and the Provision of Water Service

Sheila M. Olmstead

Land Economics, 2004, vol. 80, issue 1, 136-150

Abstract: Where the law does not mandate service coverage results from high cost of universal service, poor communities frequently are service and low potential revenue associomitted from drink ing water supply network s. A c- ated with providing water to colonias, as cording to conventional wisdom, lack of service is well as political factors. Second, it examdue primarily to the high cost of extending service ines for to the poor, their low ability to pay, and their weak the first time the influence of a political influence. Through an empirical analysis colonia’s most likely service provider on of poor communities in Texas, this study assesses probability of service coverage. these and other economic and institutional determi- Recent research has focused on the ponants of drinking water service acquisition. The tential for less traditional water service analysis reveals that rate regulation, intended to providers to serve poor populations in demake water service affordable to all households, veloping countries (Collignon 1999; Snell is also responsible, and may actually reduce service 1998; Solo 1998, 1999). While examining a coverage among the poor.

JEL-codes: Q25 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (8)

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