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Equity in Domestic Water Rates Design

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  • Ramón Barberán
  • Fernando Arbués

Abstract

Water rates seek at once to fund the service, to distribute the cost among users and to allocate water based on demand. Therefore, rates design is frequently subject to normative criteria such as full cost recovery, efficiency, equity and simplicity. This paper, proposes a method of ensuring the operational effectiveness of the equity criterion. Specifically, the objective is to resolve the problem of equity caused by pricing systems involving stepwise increments in the cost of aggregate household consumption. The problem is that it is more costly to meet basic individual water needs, the larger the household concerned. This paper analyses the water rates applied in the city of Zaragoza (Spain) and proposes a new rates design based on the normative criteria referred to above, which is applicable to any city and, therefore, may be of general interest. Copyright Springer Science+Business Media B.V. 2009

Suggested Citation

  • Ramón Barberán & Fernando Arbués, 2009. "Equity in Domestic Water Rates Design," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(10), pages 2101-2118, August.
    • Handle: RePEc:spr:waterr:v:23:y:2009:i:10:p:2101-2118
    DOI: 10.1007/s11269-008-9372-3
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    2. Fabien Martinez, 2015. "A Three-Dimensional Conceptual Framework of Corporate Water Responsibility," Post-Print hal-02887624, HAL.
    3. Aina, Ifedotun Victor & Thiam, Djiby Racine & Dinar, Ariel, 2023. "Substitution of piped water and self-supplied groundwater: The case of residential water in South Africa," Utilities Policy, Elsevier, vol. 80(C).

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