Alternative tariff structures and household composition: Evidence from Spain's Valencia region

García-López, Marcos; Montaño, Borja; Melgarejo, Joaquín; Universidad de Alicante. Departamento de Análisis Económico Aplicado; Universidad de Alicante. Instituto Universitario del Agua y las Ciencias Ambientales; Historia e Instituciones Económicas; Recursos Hídricos y Desarrollo Sostenible

Alternative tariff structures and household composition: Evidence from Spain's Valencia region

2022

Water pricing is one of the fundamental tools for water resources management. However, the current tariff structure in Spain has associated problems in relation to the composition of households. This paper analyses the current tariffs of Spain's Valencia region and studies the effect of alternative tariff structures. The results show an imbalance irrespective of the tariff applied even when the number of household members is considered, as the relationship between the number of household members and water consumption is not linear. Therefore, the problem is not the tariff structure per se but not including the composition of the household in the tariff.

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This work was financed by the Office of the Vice President of Research and Knowledge Transfer of the University of Alicante, Spain (Marcos García-López has a scholarship for The Training of University Teachers from the University of Alicante (UAFPU 2019-16).

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