Cost Recoverable Tariffs to Increase Access to Basic Services among Poor Households

Natalie Chun

No 342, ADB Economics Working Paper Series from Asian Development Bank

Abstract: The design of alternative tariff structures can serve as a low-cost and effective tool in achieving higher take-up of basic services among poor households while allowing the provider to recover costs. A contingent valuation survey from the Water Supply and Sanitation Project of the Asian Development Bank in Cebu, Philippines is used to show that tariff structures with a low one-time connection price and price differentiates based on wealth measures can result in a five-fold increase in the take-up of water services by poor households over the base tariff structure. More moderate impacts, however, are found for the take-up of new sanitation and sewage services.

Keywords: Asia; Philippines; water and sanitation services; tariffs; demand estimation; contingent valuation (search for similar items in EconPapers)
JEL-codes: D12 D61 D63 O21 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2013-03-31
Note: http://www.adb.org/sites/default/files/pub/2013/ewp-342.pdf
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0342

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