Analysis of water prices in urban systems: experience from three basins in Southern Portugal
Main Author: | |
---|---|
Publication Date: | 2013 |
Other Authors: | , , |
Format: | Article |
Language: | eng |
Source: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Download full: | https://ciencia.iscte-iul.pt/public/pub/id/28536 http://hdl.handle.net/10071/11768 |
Summary: | The economic analysis of water uses is one of the main components of river basin management plans (RBMP), as established by the Water Framework Directive. Thus the first-generation RBMP for Portuguese river basin districts (RBD) 6 – Sado/Mira, 7 – Guadiana and 8 – Ribeiras do Algarve included a thorough economic analysis of urban drinking water supply (WS) and wastewater drainage and treatment (WWDT) systems. This paper summarizes results on the role of prices, encompassing the assessment of cost-recovery levels, the discussion of tariff structures, the estimation of residential water-demand elasticities and an appraisal of affordability conditions. RBD7 had the lowest cost-recovery levels, namely in WWDT, but revenue was insufficient to guarantee financial equilibrium in all RBD. As for tariff structures, they were far from complying with the economic regulator’s recommendations or meeting economic efficiency criteria. The estimated residential water-demand elasticities indicate that climate change may have a strong impact on demanded quantity, whereas price has a significant but limited impact on moderating demand, illustrating the need for a combination of price and non-price policies. On the other hand, low price elasticities imply that price increases could be effective in writing off tariff deficits. Average household expenses with water services were still substantially lower than the OECD recommended threshold, although tariff increases need to be done in a way that ensures access to the poorer households. |
id |
RCAP_29262af322e6e7850193599e6687973b |
---|---|
oai_identifier_str |
oai:repositorio.iscte-iul.pt:10071/11768 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Analysis of water prices in urban systems: experience from three basins in Southern PortugalWater economicsCost recoveryWater supplyWastewaterWater tariffsResidential water demandAffordabilityThe economic analysis of water uses is one of the main components of river basin management plans (RBMP), as established by the Water Framework Directive. Thus the first-generation RBMP for Portuguese river basin districts (RBD) 6 – Sado/Mira, 7 – Guadiana and 8 – Ribeiras do Algarve included a thorough economic analysis of urban drinking water supply (WS) and wastewater drainage and treatment (WWDT) systems. This paper summarizes results on the role of prices, encompassing the assessment of cost-recovery levels, the discussion of tariff structures, the estimation of residential water-demand elasticities and an appraisal of affordability conditions. RBD7 had the lowest cost-recovery levels, namely in WWDT, but revenue was insufficient to guarantee financial equilibrium in all RBD. As for tariff structures, they were far from complying with the economic regulator’s recommendations or meeting economic efficiency criteria. The estimated residential water-demand elasticities indicate that climate change may have a strong impact on demanded quantity, whereas price has a significant but limited impact on moderating demand, illustrating the need for a combination of price and non-price policies. On the other hand, low price elasticities imply that price increases could be effective in writing off tariff deficits. Average household expenses with water services were still substantially lower than the OECD recommended threshold, although tariff increases need to be done in a way that ensures access to the poorer households.European Water Resources Association2016-07-18T10:47:38Z2013-01-01T00:00:00Z20132016-07-18T10:42:09Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://ciencia.iscte-iul.pt/public/pub/id/28536http://hdl.handle.net/10071/11768eng1105-7580Roseta-Palma, C.Monteiro, H.Coutinho, P. B.Fernandes, P. A.info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:47:23Zoai:repositorio.iscte-iul.pt:10071/11768Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:22:57.929909Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal |
title |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal |
spellingShingle |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal Roseta-Palma, C. Water economics Cost recovery Water supply Wastewater Water tariffs Residential water demand Affordability |
title_short |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal |
title_full |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal |
title_fullStr |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal |
title_full_unstemmed |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal |
title_sort |
Analysis of water prices in urban systems: experience from three basins in Southern Portugal |
author |
Roseta-Palma, C. |
author_facet |
Roseta-Palma, C. Monteiro, H. Coutinho, P. B. Fernandes, P. A. |
author_role |
author |
author2 |
Monteiro, H. Coutinho, P. B. Fernandes, P. A. |
author2_role |
author author author |
dc.contributor.author.fl_str_mv |
Roseta-Palma, C. Monteiro, H. Coutinho, P. B. Fernandes, P. A. |
dc.subject.por.fl_str_mv |
Water economics Cost recovery Water supply Wastewater Water tariffs Residential water demand Affordability |
topic |
Water economics Cost recovery Water supply Wastewater Water tariffs Residential water demand Affordability |
description |
The economic analysis of water uses is one of the main components of river basin management plans (RBMP), as established by the Water Framework Directive. Thus the first-generation RBMP for Portuguese river basin districts (RBD) 6 – Sado/Mira, 7 – Guadiana and 8 – Ribeiras do Algarve included a thorough economic analysis of urban drinking water supply (WS) and wastewater drainage and treatment (WWDT) systems. This paper summarizes results on the role of prices, encompassing the assessment of cost-recovery levels, the discussion of tariff structures, the estimation of residential water-demand elasticities and an appraisal of affordability conditions. RBD7 had the lowest cost-recovery levels, namely in WWDT, but revenue was insufficient to guarantee financial equilibrium in all RBD. As for tariff structures, they were far from complying with the economic regulator’s recommendations or meeting economic efficiency criteria. The estimated residential water-demand elasticities indicate that climate change may have a strong impact on demanded quantity, whereas price has a significant but limited impact on moderating demand, illustrating the need for a combination of price and non-price policies. On the other hand, low price elasticities imply that price increases could be effective in writing off tariff deficits. Average household expenses with water services were still substantially lower than the OECD recommended threshold, although tariff increases need to be done in a way that ensures access to the poorer households. |
publishDate |
2013 |
dc.date.none.fl_str_mv |
2013-01-01T00:00:00Z 2013 2016-07-18T10:47:38Z 2016-07-18T10:42:09Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://ciencia.iscte-iul.pt/public/pub/id/28536 http://hdl.handle.net/10071/11768 |
url |
https://ciencia.iscte-iul.pt/public/pub/id/28536 http://hdl.handle.net/10071/11768 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1105-7580 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
European Water Resources Association |
publisher.none.fl_str_mv |
European Water Resources Association |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799134791225835520 |