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Water affordability: alternativem measurement and explanatory Factors in Andalusia

Author

Listed:
  • Maria A. García-Valiñas
  • Roberto Martínez-Francisco
  • González-Gómez

Abstract

Using information on a basic or “lifeline” level of domestic water use obtained from a Stone-Geary water demand function and estimated at around 128m3 per household per year, we calculate water affordability indexes relating the cost of such lifeline to average municipal income levels in a sample of municipalities in Southern Spain. The analysis of the factors behind the differences in that ratio across municipalities shows that the relative cost of purchasing the lifeline appears inversely related to average income levels. We also found that higher charges affect the basic levels of use in tourist municipalities, and that lower prices are charged where water services are directly managed by the municipality.

Suggested Citation

  • 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.
    • Handle: RePEc:een:cweanu:1014
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    More about this item

    Keywords

    residential water tariffs; affordability; Stone-Geary utility function; water price regulation;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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