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dc.titlePricing Determinants in the Water and Sanitation Sector: A Quick View of Heterogeneity in Latin America and the Caribbean
dc.contributor.authorPérez Urdiales, María
dc.contributor.authorGómez Vidal, Analía
dc.contributor.authorLibra, Jesse Madden
dc.contributor.orgunitWater and Sanitation Division
dc.coverageLatin America and the Caribbean
dc.date.available2023-03-17T00:03:00
dc.date.issue2023-03-17T00:03:00
dc.description.abstractThe dual nature of water as a finite resource and as a basic human right creates a tension that presents important implications for water pricing. Water tariffs are a key tool used by policymakers to create incentive structures that promote efficient use; at the same time, they can create barriers to access and ignore waters socio-cultural value if not calibrated properly. This conflict between pricing as to reduce over-consumption and to guarantee accessibility exposes the difficulty of optimizing residential water pricing, and the importance of progressive tariff structures in building more resilient communities.Water policymakers view tariffs as an instrument to balance various objectives, such as efficiency, equity, cost recovery, and environmental preservation. However, these competing objectives mean that effective water tariff structures must be acutely customized to local contexts, a reality that is especially pertinent to Latin America and the Caribbean (LAC) due to its geographic and temporal heterogeneity in terms of water availability and demand. Prices can also be influenced by other factors. Four primary factor categories were identified as influential to water prices based on a comprehensive review of the price determination literature: (1) environmental factors, (2) urban factors, (3) political and ideological factors, and (4) management and institutional factors. The present brief examines how these factors theoretically impact pricing and what their status is throughout LAC, with the ultimate goal of providing a framework for future research.
dc.format.extent18
dc.identifier.doihttp://dx.doi.org/10.18235/0004796
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Pricing-Determinants-in-the-Water-and-Sanitation-Sector-A-Quick-View-of-Heterogeneity-in-Latin-America-and-the-Caribbean.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Determinantes-de-precios-en-agua-y-saneamiento-un-vistazo-a-la-heterogeneidad-en-America-Latina-y-el-Caribe.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectWater and Sanitation
dc.subjectWater Supply
dc.subjectEnvironment and Natural Resource
dc.subjectDrought
dc.subjectWater Resource
dc.subjectHuman Rights
dc.subjectSustainable Development Goals
dc.subjectGroundwater
dc.subjectDebtor Finance
dc.subjectSewerage
dc.subjectEconomic Policy
dc.subjectWater Tariff
dc.subject.jelcodeQ25 - Water
dc.subject.jelcodeQ21 - Demand and Supply • Prices
dc.subject.jelcodeH40 - Publicly Provided Goods: General
dc.subject.keywordswater tariffs;Water utilities;tariff regulation;Water tariff determinants
dc.typeDiscussion Papers
idb.identifier.pubnumberIDB-DP-00993
idb.operationRG-T3784
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