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Policy and nonpolicy determinants of progressivity of block residential water rates - a case study of Mauritius

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  • Yeti Nisha Madhoo

Abstract

This article presents empirical results on increasing block water rates that contradict conventional wisdom in developing countries and many developed countries. Unlike in other countries, family size in Mauritius increases with income. Due to this unusual demographic dimension, increasing block tariffs coupled with lifeline rates that are below long-run marginal cost applicable to low-volume users produce a different result. Regional variations in water demand and extensive metering both in rural and urban areas reinforce the redistributing nature of water charges. Traditional incidence analysis with adjustment for family size, linear expenditure systems approach and interactive demand models empirically support this result.

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  • Yeti Nisha Madhoo, 2009. "Policy and nonpolicy determinants of progressivity of block residential water rates - a case study of Mauritius," Applied Economics Letters, Taylor & Francis Journals, vol. 16(2), pages 211-215.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:2:p:211-215
    DOI: 10.1080/13504850601018213
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    References listed on IDEAS

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    1. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
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    1. Suárez-Varela, Marta & Martínez-Espiñeira, Roberto & González-Gómez, Francisco, 2015. "An analysis of the price escalation of non-linear water tariffs for domestic uses in Spain," Utilities Policy, Elsevier, vol. 34(C), pages 82-93.
    2. Roberto Balado-Naves & Marian Garcia-Valiñas & David Roibas, 2023. "Efficiency, perceived prices, and household water demand: A stochastic frontier analysis for the Spanish city of Gijón," Efficiency Series Papers 2023/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    3. Yeti Nisha Madhoo & Shyam Nath, 2014. "Beneficiary charges: The Cinderella of subnational finance," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 11, pages 364-402, Edward Elgar Publishing.
    4. Garcia-Valiñas, Maria A. & Athukorala, Wasantha & Wilson, Clevo & Torgler, Benno & Gifford, Robert, 2014. "Nondiscretionary residential water use: the impact of habits and water-efficient technologies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), April.
    5. Maria A. García‐Valiñas & Roberto Martínez‐Espiñeira & Francisco González‐Gómez, 2010. "Economics of Water Reform in the Murray-Darling Basin," Centre for Water Economics, Environment and Policy Papers 1005, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    6. Maria A. García-Valiñas & Roberto Martínez-Francisco & González-Gómez, 2010. "Water affordability: alternativem measurement and explanatory Factors in Andalusia," Centre for Water Economics, Environment and Policy Papers 1014, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    7. Ming-Feng Hung & Bin-Tzong Chie & Tai-Hsin Huang, 2017. "Residential water demand and water waste in Taiwan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 249-268, April.
    8. David Roibas & Maria A. Garcia-Valiñas & Roberto Fernandez-Llera, 2019. "Measuring the Impact of Water Supply Interruptions on Household Welfare," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 159-179, May.
    9. Roberto Balado-Naves & Marian Garcia-Valiñas & David Roibas, 2023. "Efficiency, perceived prices, and household water demand: A stochastic frontier analysis for the Spanish city of Gijón," Working Papers hal-04147781, HAL.
    10. Yeti Nisha Madhoo & Shyam Nath, 2010. "Beneficiary Charges: The Cinderella of Subnational Finance," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1317, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

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