IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v79y2022ics0957178722000972.html
   My bibliography  Save this article

Alternative tariff structures and household composition: Evidence from Spain's Valencia region

Author

Listed:
  • García-López, Marcos
  • Montano, Borja
  • Melgarejo, Joaquín

Abstract

Water pricing is one of the fundamental tools for water resources management. However, the current tariff structure in Spain has associated problems in relation to the composition of households. This paper analyses the current tariffs of Spain's Valencia region and studies the effect of alternative tariff structures. The results show an imbalance irrespective of the tariff applied even when the number of household members is considered, as the relationship between the number of household members and water consumption is not linear. Therefore, the problem is not the tariff structure per se but not including the composition of the household in the tariff.

Suggested Citation

  • García-López, Marcos & Montano, Borja & Melgarejo, Joaquín, 2022. "Alternative tariff structures and household composition: Evidence from Spain's Valencia region," Utilities Policy, Elsevier, vol. 79(C).
  • Handle: RePEc:eee:juipol:v:79:y:2022:i:c:s0957178722000972
    DOI: 10.1016/j.jup.2022.101433
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178722000972
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jup.2022.101433?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. S. Gaudin, 2006. "Effect of price information on residential water demand," Applied Economics, Taylor & Francis Journals, vol. 38(4), pages 383-393.
    2. David Zetland & Christopher Gasson, 2013. "A global survey of urban water tariffs: are they sustainable, efficient and fair?," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 29(3), pages 327-342, September.
    3. Roberto Martinez-Espineira & Celine Nauges, 2004. "Is all domestic water consumption sensitive to price control?," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1697-1703.
    4. Vatn, Arild, 2010. "An institutional analysis of payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1245-1252, April.
    5. Marta Suárez-Varela, 2020. "Las políticas de tarifas urbanas del agua en España," Studies on the Spanish Economy eee2020-31, FEDEA.
    6. Marcos García-López & Borja Montano & Joaquín Melgarejo, 2020. "Water Pricing Policy as Tool to Induce Efficiency in Water Resources Management," IJERPH, MDPI, vol. 17(10), pages 1-19, May.
    7. Dolores Rey & Carlos Dionisio Pérez-Blanco & Alvar Escriva-Bou & Corentin Girard & Ted I. E. Veldkamp, 2019. "Role of economic instruments in water allocation reform: lessons from Europe," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 35(2), pages 206-239, March.
    8. Sylvestre Gaudin & Ronald C. Griffin & Robin C. Sickles, 2001. "Demand Specification for Municipal Water Management: Evaluation of the Stone-Geary Form," Land Economics, University of Wisconsin Press, vol. 77(3), pages 399-422.
    9. Mansur, Erin T. & Olmstead, Sheila M., 2012. "The value of scarce water: Measuring the inefficiency of municipal regulations," Journal of Urban Economics, Elsevier, vol. 71(3), pages 332-346.
    10. R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 57-65, September.
    11. Ruijs, A. & Zimmermann, A. & van den Berg, M., 2008. "Demand and distributional effects of water pricing policies," Ecological Economics, Elsevier, vol. 66(2-3), pages 506-516, June.
    12. Viju Ipe & Subhash Bhagwat, 2002. "Chicago's water market: dynamics of demand, prices and scarcity rents," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2157-2163.
    13. James Yoo & Silvio Simonit & Ann P. Kinzig & Charles Perrings, 2014. "Estimating the Price Elasticity of Residential Water Demand: The Case of Phoenix, Arizona," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(2), pages 333-350.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcos García-López & Borja Montano & Joaquín Melgarejo, 2020. "Water Pricing Policy as Tool to Induce Efficiency in Water Resources Management," IJERPH, MDPI, vol. 17(10), pages 1-19, May.
    2. María Ángeles García-Valiñas & Sara Suárez-Fernández, 2022. "Are Economic Tools Useful to Manage Residential Water Demand? A Review of Old Issues and Emerging Topics," Post-Print hal-04067487, HAL.
    3. Henrique Monteiro, 2010. "Residential Water Demand in Portugal: checking for efficiency-based justifications for increasing block tariffs," Working Papers Series 1 ercwp0110, ISCTE-IUL, Business Research Unit (BRU-IUL).
    4. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
    5. Fuente, David, 2019. "The design and evaluation of water tariffs: A systematic review," Utilities Policy, Elsevier, vol. 61(C).
    6. Hung, Ming-Feng & Chie, Bin-Tzong, 2017. "The long-run performance of increasing-block pricing in Taiwan's residential electricity sector," Energy Policy, Elsevier, vol. 109(C), pages 782-793.
    7. Teresa Torregrosa & Martín Sevilla & Borja Montaño & Victoria López-Vico, 2010. "The Integrated Management of Water Resources in Marina Baja (Alicante, Spain). A Simultaneous Equation Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(14), pages 3799-3815, November.
    8. Joachim Schleich & Thomas Hillenbrand, 2019. "Residential water demand responds asymmetrically to rising and falling prices," Applied Economics, Taylor & Francis Journals, vol. 51(45), pages 4973-4981, September.
    9. Sheila M. Olmstead, 2010. "The Economics of Managing Scarce Water Resources," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 179-198, Summer.
    10. Maria A. García-Valiñas & Roberto Martínez-Francisco & González-Gómez, 2010. "Water affordability: alternativem measurement and explanatory Factors in Andalusia," Centre for Water Economics, Environment and Policy Papers 1014, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    11. David Roibas & Maria A. Garcia-Valiñas & Roberto Fernandez-Llera, 2019. "Measuring the Impact of Water Supply Interruptions on Household Welfare," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 159-179, May.
    12. Mónica Maldonado-Devis & Vicent Almenar-Llongo, 2021. "A Panel Data Estimation of Domestic Water Demand with IRT Tariff Structure: The Case of the City of Valencia (Spain)," Sustainability, MDPI, vol. 13(3), pages 1-26, January.
    13. R. Quentin Grafton & Tom Kompas & Hang To & Michael Ward, 2009. "Residential Water Consumption: A Cross Country Analysis," Environmental Economics Research Hub Research Reports 0923, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University, revised Aug 2009.
    14. Schleich, Joachim & Hillenbrand, Thomas, 2019. "Water demand responds asymmetrically to rising and falling prices," Working Papers "Sustainability and Innovation" S03/2019, Fraunhofer Institute for Systems and Innovation Research (ISI).
    15. Milan Ščasný & Šarlota Smutná, 2021. "Estimation of price and income elasticity of residential water demand in the Czech Republic over three decades," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(2), pages 580-608, June.
    16. Leroux, Anke D. & Martin, Vance L. & Zheng, Hao, 2018. "Addressing water shortages by force of habit," Resource and Energy Economics, Elsevier, vol. 53(C), pages 42-61.
    17. Dinusha Dharmaratna & Edwyna Harris, 2010. "Estimating Residential Water Demand using the Stone-Geary Functional Form: the Case of Sri Lanka," Monash Economics Working Papers 46-10, Monash University, Department of Economics.
    18. Maria A. García‐Valiñas & Roberto Martínez‐Espiñeira & Francisco González‐Gómez, 2010. "Economics of Water Reform in the Murray-Darling Basin," Centre for Water Economics, Environment and Policy Papers 1005, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    19. Marcos García-López & Joaquín Melgarejo & Borja Montano, 2021. "The Financing of Wastewater Treatment and the Balance of Payments for Water Services: Evidence from Municipalities in the Region of Valencia," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    20. El-Khattabi, Ahmed Rachid & Eskaf, Shadi & Isnard, Julien P. & Lin, Laurence & McManus, Brian & Yates, Andrew J., 2021. "Heterogeneous responses to price: Evidence from residential water consumers," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:79:y:2022:i:c:s0957178722000972. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.