Explaining Geographical Differences in Water Prices: Do Institutional Factors Really Matter?
AbstractThe availability, price, and quality of infrastructure services vary considerably across regions. This paper analyzes which elements significantly contribute to geographical differences in water prices. For empirical analysis, it employs water supply price and demand equations under a system of simultaneous structural equations. Several institutional factors explain geographical differences in water prices, such as prior appropriation water rights versus riparian rights, pricing structures, combining water bills with other bills, and other infrastructure. Water rate regulations by public utility commission also have some negative effects on water prices. State environmental regulations and commitments contribute to higher water prices, especially for non-residential water users.
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Bibliographic InfoArticle provided by Southern Regional Science Association in its journal Review of Regional Studies.
Volume (Year): 37 (2007)
Issue (Month): 2 ()
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Find related papers by JEL classification:
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
- L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
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- Suho Bae & Sheldon Gen & Seong-Gin Moon, 2012. "Institutional, geographic, and facility factors affecting differences in prices for wastewater services," The Annals of Regional Science, Springer, vol. 49(3), pages 767-788, December.
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