Economics of Water Reform in the Murray-Darling Basin
Maria A. García‐Valiñas,
Roberto Martínez‐Espiñeira and
Authors registered in the RePEc Author Service: María A. García-Valiñas () and
Centre for Water Economics, Environment and Policy Papers from Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University
Using information on a basic or “lifeline” level of domestic water use obtained from a Stone-Geary water demand function and estimated at around 128m3 per household per year, we calculate water affordability indexes relating the cost of such lifeline to average municipal income levels in a sample of municipalities in Southern Spain. The analysis of the factors behind the differences in that ratio across municipalities shows that the relative cost of purchasing the lifeline appears inversely related to average income levels. We also found that higher charges affect the basic levels of use in tourist municipalities, and that lower prices are charged where water services are directly managed by the municipality.
Keywords: residential water tariffs; affordability; Stone-Geary utility function; water price regulation (search for similar items in EconPapers)
JEL-codes: D12 Q21 Q25 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:een:cweanu:1005
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