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Making ends meet: Actual versus potential joint affordability of utility services

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  • Martins, Rita
  • Quintal, Carlota
  • Antunes, Micaela

Abstract

This paper analyses the joint affordability of a set of essential services (water, energy, and communications). To overcome the limitations of analyses based on actual expenditures, the paper addresses potential affordability, advancing a method to assess it empirically. It also investigates beyond national averages by using microeconomic data from the 2015/2016 Portuguese Household Budget Survey. The disaggregated analysis reveals disparities, with poorer and larger families presenting higher burdens of utility expenditures. A sensitivity analysis reveals that at least 9% of households face actual affordability problems. Potential affordability results suggest the existence of under-consumption within the first two expenditure quintiles.

Suggested Citation

  • Martins, Rita & Quintal, Carlota & Antunes, Micaela, 2019. "Making ends meet: Actual versus potential joint affordability of utility services," Utilities Policy, Elsevier, vol. 56(C), pages 120-126.
    • Handle: RePEc:eee:juipol:v:56:y:2019:i:c:p:120-126
    DOI: 10.1016/j.jup.2018.12.002
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    References listed on IDEAS

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    Cited by:

    1. Antunes, Micaela & Teotónio, Carla & Quintal, Carlota & Martins, Rita, 2023. "Energy affordability across and within 26 European countries: Insights into the prevalence and depth of problems using microeconomic data," Energy Economics, Elsevier, vol. 127(PA).
    2. Martins, Rita & Quintal, Carlota & Teotónio, Carla & Antunes, Micaela, 2023. "Water affordability across and within European countries: a microdata analysis," Utilities Policy, Elsevier, vol. 83(C).
    3. López-Ruiz, Samara & Tortajada, Cecilia & González-Gómez, Francisco, 2020. "Is the human right to water sufficiently protected in Spain? Affordability and governance concerns," Utilities Policy, Elsevier, vol. 63(C).
    4. Dorothée Charlier & Bérangère Legendre & Olivia Ricci, 2022. "Utility Services Poverty: Addressing the Problem of Household Deprivation in Mayotte," TEPP Working Paper 2022-21, TEPP.
    5. Martins, Rita & Antunes, Micaela & Fortunato, Adelino, 2020. "Regulatory changes to Portugal's social tariffs: Carrying water in a sieve?," Utilities Policy, Elsevier, vol. 64(C).
    6. Pierce, Gregory & Chow, Nicholas & DeShazo, J.R., 2020. "The case for state-level drinking water affordability programs: Conceptual and empirical evidence from California," Utilities Policy, Elsevier, vol. 63(C).
    7. Teotónio, C. & Martins, R. & Antunes, M. & Quintal, C., 2023. "Unveiling underconsumption of water and electricity services at the bottom of the income distribution," Utilities Policy, Elsevier, vol. 82(C).
    8. Romano, Giulia & Guerrini, Andrea & Senoner, Thomas, 2020. "Establishing a new water tariff method that complies with european principles and respects statutory autonomy: The case of South Tyrol," Utilities Policy, Elsevier, vol. 64(C).
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    10. Fagundes, Thalita Salgado & Cunha Marques, Rui & Malheiros, Tadeu Fabrício, 2024. "Are Brazilian water auction prices affordable for vulnerable families?," Utilities Policy, Elsevier, vol. 88(C).
    11. Martinez-Espiñeira, Roberto & Pérez Urdiales, María, 2024. "Water Affordability Measures Under Multiple and Non-Exclusive Sources in Latin America and the Caribbean," IDB Publications (Working Papers) 13395, Inter-American Development Bank.

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    More about this item

    Keywords

    Joint affordability; Utilities; Potential affordability;
    All these keywords.

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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