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Water Pricing in Honduras: A Political Economy Analysis

Author

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  • Strand, J.

Abstract

This paper explores water pricing policy in Tegucigalpa, the capital of Honduras, in a political economy perspective. I argue that current water prices are too low and significantly below long-run marginal cost, and demonstrate that water prices must be raised significantly over the next ten years for projected demands and supplies to be in balance. I also argue that low water prices has a number of adverse allocational and distributional consequences. I then go on to discuss various (external and internal) actors' stakes in maintaining or changing the current water pricing regime, and discuss some potential mechanisms by which more efficient prices can be implemented.

Suggested Citation

  • Strand, J., 1998. "Water Pricing in Honduras: A Political Economy Analysis," Memorandum 21/1998, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:1998_021
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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/1998/Memo-21-1998.pdf
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    References listed on IDEAS

    as
    1. Whittington, Dale & Lauria, Donald T. & Mu, Xinming, 1991. "A study of water vending and willingness to pay for water in Onitsha, Nigeria," World Development, Elsevier, vol. 19(2-3), pages 179-198.
    2. Anne O. Krueger, 1998. "Whither the World Bank and the IMF?," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1983-2020, December.
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    Cited by:

    1. Felgendreher, Simon & Lehmann, Paul, 2012. "The political economy of the peruvian urban water sector," UFZ Discussion Papers 18/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).

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    More about this item

    Keywords

    WATER ; PRICING ; HONDURAS ; POLITICAL ECONOMY;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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