A Global Survey of Urban Water Tariffs — Are They Sustainable, Efficient and Fair?
International Journal of Water Resources Development, Forthcoming
19 Pages Posted: 5 Mar 2012 Last revised: 14 Nov 2012
Date Written: October 12, 2012
This paper examines the relations between tariffs and sustainability, efficiency and equity, using a unique data-set for 308 cities in 102 countries. Higher water tariffs are correlated with lower per capita consumption, smaller local populations, lower water availability, higher demand and a lower risk of shortage. Aggregating to the national level, higher tariffs are correlated with higher GDP and better governance. A different country-level analysis shows that a higher percentage of the population with water service is correlated with better governance, higher GDP and a greater risk of water shortage. The relation between water prices and service coverage is statistically inconsistent.
Keywords: water tariff, governance, risk, shortage, climate change, elasticity
JEL Classification: L95, Q25
Suggested Citation: Suggested Citation