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Determinants of the water rate structure choice by Canadian municipalities

Author

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  • Gurung, Aditya
  • Martínez-Espiñeira, Roberto

Abstract

We analyze the relationship between local municipal characteristics and their choice of Water Rate Structure (WRS), applying a Multinomial Logit Model (MLM) to the most recently available dataset of Canadian municipal data. The results reveal that, to some extent, local characteristics explain the municipalities' choice of WRS consistent with expectations. However, beyond the effect of determinants that describe the utilities’ operational environment, there remains a degree of variability in tariff setting that likely stems from the balancing of efficiency objectives with considerations of fairness and political acceptability.

Suggested Citation

  • Gurung, Aditya & Martínez-Espiñeira, Roberto, 2019. "Determinants of the water rate structure choice by Canadian municipalities," Utilities Policy, Elsevier, vol. 58(C), pages 89-101.
    • Handle: RePEc:eee:juipol:v:58:y:2019:i:c:p:89-101
    DOI: 10.1016/j.jup.2019.04.003
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    Cited by:

    1. M. Allaire & A. Dinar, 2022. "What Drives Water Utility Selection of Pricing Methods? Evidence from California," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(1), pages 153-169, January.
    2. David Switzer, 2020. "The Context of Responsiveness: Resident Preferences, Water Scarcity, and Municipal Conservation Policy," Review of Policy Research, Policy Studies Organization, vol. 37(2), pages 260-279, March.
    3. Ruiz-Rosa, Inés & García-Rodríguez, Francisco J. & Antonova, Natalia, 2020. "Developing a methodology to recover the cost of wastewater reuse: A proposal based on the polluter pays principle," Utilities Policy, Elsevier, vol. 65(C).
    4. Ghada Altarawneh, 2021. "A fuzzy logic-based approach for progressive pricing of freshwater in Jordan," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(4), pages 480-489, August.

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