How Low Usage Charges for Drinking Water Act Against the Interests of the Poor (Box)

Box 9.5.1 in Morris, Sebastian (ed.) India Infrastructure Report - Issues in Market Structure and Regulation, 3inetwork, Oxford Univ Press, New Delhi, 2001.

1 Pages Posted: 27 Nov 2012

See all articles by Sebastian Morris

Sebastian Morris

Indian Institute of Management, Ahmedabad - Economics; Goa Institute of Management

Date Written: January 1, 2001

Abstract

Shows analytically how low charges for drinking water can hurt the poor in a situation of limited supply when the price elastic demand of the rich compete with the (need) inelastic demand of the poor. Argues that this is a core problem in many Indian cities including most notably Delhi.

Keywords: Delhi, India, Drinking, Water, Usage-Charges, Allocation Efficiency, Infrastructure, Subsidies, Merit Goods, Demand Elasticity

JEL Classification: H4, L95, R5

Suggested Citation

Morris, Sebastian, How Low Usage Charges for Drinking Water Act Against the Interests of the Poor (Box) (January 1, 2001). Box 9.5.1 in Morris, Sebastian (ed.) India Infrastructure Report - Issues in Market Structure and Regulation, 3inetwork, Oxford Univ Press, New Delhi, 2001., Available at SSRN: https://ssrn.com/abstract=2180105

Sebastian Morris (Contact Author)

Indian Institute of Management, Ahmedabad - Economics ( email )

Vastrapur
Ahmedabad 380015, Gujarat
India
+919824232121 (Phone)

HOME PAGE: http://sebastianmorris.org/

Goa Institute of Management ( email )

Ribandar
Ribandar
Panaji, Goa 403006
India

HOME PAGE: http://sebastianmorris.org/

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