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Thirsty Colonias: Rate Regulation and the Provision of Water Service


  • Sheila M. Olmstead


Where the law does not mandate service coverage results from high cost of universal service, poor communities frequently are service and low potential revenue associomitted from drink ing water supply network s. A c- ated with providing water to colonias, as cording to conventional wisdom, lack of service is well as political factors. Second, it examdue primarily to the high cost of extending service ines for to the poor, their low ability to pay, and their weak the first time the influence of a political influence. Through an empirical analysis colonia’s most likely service provider on of poor communities in Texas, this study assesses probability of service coverage. these and other economic and institutional determi- Recent research has focused on the ponants of drinking water service acquisition. The tential for less traditional water service analysis reveals that rate regulation, intended to providers to serve poor populations in demake water service affordable to all households, veloping countries (Collignon 1999; Snell is also responsible, and may actually reduce service 1998; Solo 1998, 1999). While examining a coverage among the poor.

Suggested Citation

  • Sheila M. Olmstead, 2004. "Thirsty Colonias: Rate Regulation and the Provision of Water Service," Land Economics, University of Wisconsin Press, vol. 80(1), pages 136-150.
  • Handle: RePEc:uwp:landec:v:80:y:2004:i:1:p:136-150

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    Cited by:

    1. Sheila M. Olmstead, 2010. "The Economics of Managing Scarce Water Resources," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 179-198, Summer.
    2. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 44-62, Winter.
    3. Esther Gerlach & Richard Franceys, 2010. "'Standpipes and beyond'-a universal water service dynamic," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(4), pages 455-469.

    More about this item

    JEL classification:

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


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