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Increasing access to water services: a cost-recoverable pricing model

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  • Natalie Chun

Abstract

Pricing policies can serve as a low-cost and effective tool for increasing access to water and sanitation services among poor households while allowing the provider to recover costs. An empirical model is applied to contingent-valuation survey data for water services in Cebu, Philippines. Pricing policies that utilizes a low one-time connection fee and differentiates tariffs based on wealth results in a 3 to 9-fold increase in water services access by poor households over the base pricing policy. The results provide evidence that price-discrimination techniques can be important tools toward achieving greater coverage and financial solvency of important services.

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  • Natalie Chun, 2014. "Increasing access to water services: a cost-recoverable pricing model," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 30(4), pages 662-679, December.
    • Handle: RePEc:taf:cijwxx:v:30:y:2014:i:4:p:662-679
    DOI: 10.1080/07900627.2014.895926
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    Cited by:

    1. 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.

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