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Economic regulation of water supply and sanitation services: Key trends and approaches

Author

Listed:
  • Sophie Trémolet
  • Laura Madeleine Smith

Abstract

Many countries face the need to reform the regulatory frameworks governing their water and sanitation services to expand access, reduce inequalities and tackle environmental challenges. This working paper examines trends in the economic regulation of water and sanitation services, drawing on lessons learned from a range of institutional models, including regulation by contract, regulation by agency and self-regulation. It highlights policy and regulatory instruments aimed at reducing social and territorial inequalities in access to water and sanitation services. It also explores how economic regulatory frameworks can evolve to better account for growing environmental pressures. Finally, the paper identifies the need for further research and analysis, including the development of a statistically robust survey to benchmark the performance of different regulatory models and inform institutional and regulatory reforms.

Suggested Citation

  • Sophie Trémolet & Laura Madeleine Smith, 2026. "Economic regulation of water supply and sanitation services: Key trends and approaches," OECD Environment Working Papers 275, OECD Publishing.
    • Handle: RePEc:oec:envaaa:275-en
    DOI: 10.1787/14514522-en
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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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