A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Do neighbouring municipalities matter in water pricing?
This research analyses the existence of a spillover effect in water price setting. In order to do so, spatial econometrics techniques are applied to a database of 392 municipalities in Southern Spain. In the absence of an agency to regulate and control tariff design and the price levels, nearby municipalities are found to approve similar water prices. The results suggest that the local governments observe the prices in neighbouring municipalities when revising tariffs. In this sense, local governments more than likely seek to avoid citizens perceiving a comparative disadvantage in water tariff payments. However, such political interests could be detrimental to price setting aimed at promoting an efficient use of water resources and recovering costs.
Do neighbouring municipalities matter in water pricing?
This research analyses the existence of a spillover effect in water price setting. In order to do so, spatial econometrics techniques are applied to a database of 392 municipalities in Southern Spain. In the absence of an agency to regulate and control tariff design and the price levels, nearby municipalities are found to approve similar water prices. The results suggest that the local governments observe the prices in neighbouring municipalities when revising tariffs. In this sense, local governments more than likely seek to avoid citizens perceiving a comparative disadvantage in water tariff payments. However, such political interests could be detrimental to price setting aimed at promoting an efficient use of water resources and recovering costs.
Do neighbouring municipalities matter in water pricing?
Chica-Olmo, Jorge (author) / González-Gómez, Francisco (author) / Guardiola, Jorge (author)
Urban Water Journal ; 10 ; 1-9
2013-02-01
9 pages
Article (Journal)
Electronic Resource
English
Do neighbouring municipalities matter in water pricing?
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