Research Insights: Can Private Firms in Brazil Meet Universal Water and Sewer Connection Targets?

Infrastructure expansion alone cannot achieve Brazils 2020 New Sanitation Regulatory Framework universal water and sewer connections targets, as a substantial share of the population chooses to remain unconnected to sewerage even when the infrastructure is available. Policy incentives are crucial: combining connection subsidies with higher tariffs may significantly boost both household adoption and firm expansion. Self-sustaining policies like sewer availability charges can also increase connections but shift financial burdens onto consumers, raising affordability concerns.