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Water Pricing in Honduras: A Political Economy Analysis

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Author Info

  • 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.

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File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/1998/Memo-21-1998.pdf
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Bibliographic Info

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 21/1998.

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Length: 34 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:hhs:osloec:1998_021

Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Email:
Web page: http://www.oekonomi.uio.no/indexe.html
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Related research

Keywords: WATER ; PRICING ; HONDURAS ; POLITICAL ECONOMY;

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References

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  1. 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.
  2. 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.
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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 (├ľKUS).

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