Author(s): N. Bich-Ngoc; J. Teller
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Abstract: Water inequity and poverty are challenges that are faced by not only developing countries but also developed ones. Following the full-cost recovery principle in Europe, water utilities have to rely solely on water tariffs to meet their operational costs, maintenance expenses, and investment in new protective solutions against climate change. Additionally, the ongoing reduction in water consumption added more pressure for water utilities to maintain their revenue. Hence, the current increasing trend in water tariffs in many regions in Europe is expected to continue, which might deepen water inequality and intensify water poverty. Currently, increasing block tariff is the most popular tariff scheme in the world. However, researchers and legislators have expressed mixed opinions on its social aspect (Meran and Von Hirschhausen, 2017; Whittington and Nauges, 2020). This study is the first study (to the authors’ knowledge) that aims to evaluate water (in) equality of different tariff schemes using empirical data instead of simulation.
Year: 2022