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
Date Written: January 1, 2001
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: Suggested Citation