IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v34y2015icp36-44.html
   My bibliography  Save this article

Tariff recommendations: A Panacea for the Portuguese water sector?

Author

Listed:
  • Pinto, Francisco Silva
  • Marques, Rui Cuhna

Abstract

In Portugal, in the early twenty first century, the water utilities industry was still quite complex displaying considerable financial shortcomings. That issue occurred, mainly, at the retail level due to faulty rate setting practices, stressing, perhaps, arbitrariness and political influence in price-setting strategies. To cope with that situation, the water sector regulator published tariff guidelines to harmonize cost analyses, tariff structures and levels, creating a basis for comparison. The suggestion of two-part tariffs with increasing block rates seems to lack enough flexibility and proper supporting material. Thus, our analysis focuses on assessing whether the recommendations issued are able to achieve the proposed objectives through the suggested procedures, reviewing the structure proposed and possible adjustments.

Suggested Citation

  • Pinto, Francisco Silva & Marques, Rui Cuhna, 2015. "Tariff recommendations: A Panacea for the Portuguese water sector?," Utilities Policy, Elsevier, vol. 34(C), pages 36-44.
  • Handle: RePEc:eee:juipol:v:34:y:2015:i:c:p:36-44
    DOI: 10.1016/j.jup.2014.12.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178714000940
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Castro-Rodriguez, Fidel & Da-Rocha, Jose Maria & Delicado, Pedro, 2002. "Desperately Seeking Theta's: Estimating the Distribution of Consumers under Increasing Block Rates," Journal of Regulatory Economics, Springer, vol. 22(1), pages 29-58, July.
    2. Roseta-Palma, Catarina & Monteiro, Henrique, 2008. "Pricing for Scarcity," MPRA Paper 10384, University Library of Munich, Germany.
    3. Bithas, Kostas, 2008. "The sustainable residential water use: Sustainability, efficiency and social equity. The European experience," Ecological Economics, Elsevier, vol. 68(1-2), pages 221-229, December.
    4. J. A. Johnson, 1971. "Economic Analysis of Sewer Service Charge Formulas," Land Economics, University of Wisconsin Press, vol. 47(1), pages 80-86.
    5. MICHAEL Nieswiadomy & STEVEN L. Cobb, 1993. "Impact Of Pricing Structure Selectivity On Urban Water Demand," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 101-113, July.
    6. Ruijs, A. & Zimmermann, A. & van den Berg, M., 2008. "Demand and distributional effects of water pricing policies," Ecological Economics, Elsevier, vol. 66(2-3), pages 506-516, June.
    7. Marie-Estelle Binet & Fabrizio Carlevaro & Michel Paul, 2014. "Estimation of Residential Water Demand with Imperfect Price Perception," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 561-581, December.
    8. García-Valiñas, María de los Ángeles & González-Gómez, Francisco & Picazo-Tadeo, Andrés J., 2013. "Is the price of water for residential use related to provider ownership? Empirical evidence from Spain," Utilities Policy, Elsevier, vol. 24(C), pages 59-69.
    9. Darwin C. Hall, 2009. "Politically Feasible, Revenue Sufficient, And Economically Efficient Municipal Water Rates," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 539-554, October.
    10. Robert McMaster & Daniel F. Mackay, 1998. "Distribution, Equity and Domestic Water Charging Regimes: The Case of Scotland," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 69(1), pages 85-105, March.
    11. David Zetland & Christopher Gasson, 2013. "A global survey of urban water tariffs: are they sustainable, efficient and fair?," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 29(3), pages 327-342, September.
    12. Rita Martins & Luis Cruz & Eduardo Barata, 2013. "Water Price Regulation: A Review of Portuguese Tariff Recommendations," Public Organization Review, Springer, vol. 13(2), pages 197-205, June.
    13. Carvalho, Pedro & Marques, Rui Cunha, 2014. "Computing economies of vertical integration, economies of scope and economies of scale using partial frontier nonparametric methods," European Journal of Operational Research, Elsevier, vol. 234(1), pages 292-307.
    14. Griffin, Ronald C. & Mjelde, James W., 2011. "Distributing water's bounty," Ecological Economics, Elsevier, vol. 72(C), pages 116-128.
    15. Beecher, Janice A. & Kalmbach, Jason A., 2013. "Structure, regulation, and pricing of water in the United States: A study of the Great Lakes region," Utilities Policy, Elsevier, vol. 24(C), pages 32-47.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Molinos-Senante, María & Villegas, Andres & Maziotis, Alexandros, 2019. "Are water tariffs sufficient incentives to reduce water leakages? An empirical approach for Chile," Utilities Policy, Elsevier, vol. 61(C).
    2. Casiano Flores, Cesar & Özerol, Gül & Bressers, Hans, 2017. "“Governance restricts”: A contextual assessment of the wastewater treatment policy in the Guadalupe River Basin, Mexico," Utilities Policy, Elsevier, vol. 47(C), pages 29-40.
    3. Pérez-Urdiales, María & Baerenklau, Kenneth A., 2019. "Learning to live within your (water) budget: Evidence from allocation-based rates," Resource and Energy Economics, Elsevier, vol. 57(C), pages 205-221.
    4. Martins, Rita & Quintal, Carlota & Cruz, Luís & Barata, Eduardo, 2016. "Water affordability issues in developed countries – The relevance of micro approaches," Utilities Policy, Elsevier, vol. 43(PA), pages 117-123.
    5. Cooper, Bethany & Crase, Lin, 2016. "Governing water service provision: Lessons from Australia," Utilities Policy, Elsevier, vol. 43(PA), pages 42-47.
    6. Molinos-Senante, María & Donoso, Guillermo, 2016. "Water scarcity and affordability in urban water pricing: A case study of Chile," Utilities Policy, Elsevier, vol. 43(PA), pages 107-116.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:34:y:2015:i:c:p:36-44. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/inca/30478 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.