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The case for state-level drinking water affordability programs: Conceptual and empirical evidence from California

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  • Pierce, Gregory
  • Chow, Nicholas
  • DeShazo, J.R.

Abstract

Informed by the design of a program in California, we make a three-part argument for why state-level governments might consider implementing direct bill-assistance programs for drinking water service to address growing affordability concerns for low-income households. State-level operation of bill-assistance programs represents a departure from the global trend of allowing water utilities to operate bill-assistance programs at their own discretion. We first explain the motivation for enhanced public sector support to help households pay for drinking water service. In state-level contexts such as California, we find that the basic household affordability equation has worsened due to an increase in the numerator of residential retail bills and a stagnation in the denominator of household incomes. We next demonstrate why direct bill assistance to households is necessary even with the presence of other system-level financial support or retail rate structure policies. Finally, we make the case that direct bill-assistance programs are best situated at the state level, due to substantial variation in systems’ capacity and demonstrated willingness to run their own robust affordability programs for vulnerable customers.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:juipol:v:63:y:2020:i:c:s0957178720300011
    DOI: 10.1016/j.jup.2020.101006
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    Cited by:

    1. Tamara S. Wilson & Nathan D. Van Schmidt & Ruth Langridge, 2020. "Land-Use Change and Future Water Demand in California’s Central Coast," Land, MDPI, vol. 9(9), pages 1-21, September.
    2. Warner, Mildred E. & Zhang, Xue & Rivas, Marcela González, 2020. "Which states and cities protect residents from water shutoffs in the COVID-19 pandemic?," Utilities Policy, Elsevier, vol. 67(C).
    3. Pierce, Gregory & McBride, Justin & Adams, Jacqueline, 2022. "Subsidized or subsidizing? Municipal drinking water service funds in California," Utilities Policy, Elsevier, vol. 79(C).
    4. Onda, Kyle S. & Tewari, Meenu, 2021. "Water systems in California: Ownership, geography, and affordability," Utilities Policy, Elsevier, vol. 72(C).
    5. Homsy, George C. & Warner, Mildred E., 2020. "Does public ownership of utilities matter for local government water policies?," Utilities Policy, Elsevier, vol. 64(C).
    6. Pierce, Gregory & Gmoser-Daskalakis, Kyra, 2021. "Multifaceted intra-city water system arrangements in California: Influences and implications for residents," Utilities Policy, Elsevier, vol. 71(C).
    7. Valero, Diana & Cook, Jess & Lee, Angus & Browne, Alison L. & Ellis, Rowan & Pancholi, Vidya Sagar & Hoolohan, Claire, 2023. "Addressing water poverty under climate crisis: implications for social policy," LSE Research Online Documents on Economics 120704, London School of Economics and Political Science, LSE Library.
    8. Zhang, Xue & Rivas, Marcela Gonzalez & Grant, Mary & Warner, Mildred E., 2021. "Water Pricing and Affordability in the US: Public vs Private Ownership," SocArXiv 7mc4r, Center for Open Science.
    9. 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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