Thirsty Colonias: Rate Regulation and the Provision of Water Service.

Where the law does not mandate universal service, poor communities frequently are omitted from drinking water supply networks. According to conventional wisdom, lack of service is due primarily to the high cost of extending service to the poor, their low ability to pay, and their weak political infl...

Full description

Bibliographic Details
Published in:Land Economics Vol. 80; no. 1; pp. 136 - 151
Main Author: Olmstead, Sheila M.
Format: Article
Published: University of Wisconsin Press February 2004
Subjects:
Online Access:View this record in EBSCOhost
Description
Summary:Where the law does not mandate universal service, poor communities frequently are omitted from drinking water supply networks. According to conventional wisdom, lack of service is due primarily to the high cost of extending service to the poor, their low ability to pay, and their weak political influence. Through an empirical analysis of poor communities in Texas, this study assesses these and other economic and institutional determinants of drinking water service acquisition. The analysis reveals that rate regulation, intended to make water service affordable to all households, is also responsible, and may actually reduce service coverage among the poor. (JEL Q25) Reprinted by permission of the publisher.