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The case for state-level drinking water affordability programs: Conceptual and empirical evidence from California

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  • Pierce, Gregory
  • Chow, Nicholas
  • DeShazo, J.R.

Abstract

Informed by the design of a program in California, we make a three-part argument for why state-level governments might consider implementing direct bill-assistance programs for drinking water service to address growing affordability concerns for low-income households. State-level operation of bill-assistance programs represents a departure from the global trend of allowing water utilities to operate bill-assistance programs at their own discretion. We first explain the motivation for enhanced public sector support to help households pay for drinking water service. In state-level contexts such as California, we find that the basic household affordability equation has worsened due to an increase in the numerator of residential retail bills and a stagnation in the denominator of household incomes. We next demonstrate why direct bill assistance to households is necessary even with the presence of other system-level financial support or retail rate structure policies. Finally, we make the case that direct bill-assistance programs are best situated at the state level, due to substantial variation in systems’ capacity and demonstrated willingness to run their own robust affordability programs for vulnerable customers.

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  • Pierce, Gregory & Chow, Nicholas & DeShazo, J.R., 2020. "The case for state-level drinking water affordability programs: Conceptual and empirical evidence from California," Utilities Policy, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:juipol:v:63:y:2020:i:c:s0957178720300011
    DOI: 10.1016/j.jup.2020.101006
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    Cited by:

    1. Tamara S. Wilson & Nathan D. Van Schmidt & Ruth Langridge, 2020. "Land-Use Change and Future Water Demand in California’s Central Coast," Land, MDPI, vol. 9(9), pages 1-21, September.
    2. Pierce, Gregory & Gmoser-Daskalakis, Kyra, 2021. "Multifaceted intra-city water system arrangements in California: Influences and implications for residents," Utilities Policy, Elsevier, vol. 71(C).
    3. Valero, Diana & Cook, Jess & Lee, Angus & Browne, Alison L. & Ellis, Rowan & Pancholi, Vidya Sagar & Hoolohan, Claire, 2023. "Addressing water poverty under climate crisis: implications for social policy," LSE Research Online Documents on Economics 120704, London School of Economics and Political Science, LSE Library.
    4. Warner, Mildred E. & Zhang, Xue & Rivas, Marcela González, 2020. "Which states and cities protect residents from water shutoffs in the COVID-19 pandemic?," Utilities Policy, Elsevier, vol. 67(C).
    5. Pierce, Gregory & McBride, Justin & Adams, Jacqueline, 2022. "Subsidized or subsidizing? Municipal drinking water service funds in California," Utilities Policy, Elsevier, vol. 79(C).
    6. Onda, Kyle S. & Tewari, Meenu, 2021. "Water systems in California: Ownership, geography, and affordability," Utilities Policy, Elsevier, vol. 72(C).
    7. Homsy, George C. & Warner, Mildred E., 2020. "Does public ownership of utilities matter for local government water policies?," Utilities Policy, Elsevier, vol. 64(C).
    8. Zhang, Xue & Rivas, Marcela Gonzalez & Grant, Mary & Warner, Mildred E., 2021. "Water Pricing and Affordability in the US: Public vs Private Ownership," SocArXiv 7mc4r, Center for Open Science.
    9. Martinez-Espiñeira, Roberto & Pérez Urdiales, María, 2024. "Water Affordability Measures Under Multiple and Non-Exclusive Sources in Latin America and the Caribbean," IDB Publications (Working Papers) 13395, Inter-American Development Bank.

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