Research Insights: Do Water Expenditures Exacerbate Inequality in Latin America and the Caribbean?
Date issued
May 2025
Subject
Water and Sanitation;
Equality;
Water Management;
Public Expenditure;
Income Distribution;
Water Quality;
Geography of Equality;
Subsidy
JEL code
Q21 - Demand and Supply • Prices;
O13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products;
O54 - Latin America • Caribbean;
Q25 - Water
Category
Catalogs and Brochures
Latin America and the Caribbean (LAC) have made impressive economic, social, and environmental progress, however significant disparities remain. While advancements have been made in the water and sanitation sector, lower-income households still face challenges such as limited access, poor service quality, and a disproportionately high share of their income spent on water. These issues may further exacerbate inequalities in the region. So, this paper aims to examine the role of water expenditures in contributing to inequality in LAC countries. Understanding this relationship is crucial for developing more equitable water policies and enhancing the well-being of lower-income households in the region.
NO