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Water Pricing in Honduras: A Political Economy Analysis

  • Strand, J.

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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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
Web page:

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  1. Anne O. Krueger, 1997. "Whither the World Bank and the IMF?," NBER Working Papers 6327, National Bureau of Economic Research, Inc.
  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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