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Expansion of Piped Water and Sewer Networks: The Effects of Regulation

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  • Tojal Ramos Dos Santos, Carolina
  • Morais Guidetti, Bruna

Abstract

This paper investigates strategies to expand piped water and sewer through private providers. Using billing data from a major provider in Brazil and a structural model of consumer sanitation demand and service expansion, we assess the viability of connection targets and the welfare effects of connection subsidies and price incentives. We find that universal connection targets are largely unfeasible due to low sewer take-up. Combining connection subsidies with higher sewer prices boosts expansion and adoption but requires government funding. Charging consumers upon sewer availability is self-sustaining and promotes adoption and expansion, but it shifts costs to households.

Suggested Citation

  • Tojal Ramos Dos Santos, Carolina & Morais Guidetti, Bruna, 2025. "Expansion of Piped Water and Sewer Networks: The Effects of Regulation," IDB Publications (Working Papers) 14191, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:14191
    DOI: http://dx.doi.org/10.18235/0013622
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    More about this item

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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