Estructuras tarifarías, demanda de agua y elasticidad en la ciudad de La Paz, Bolivia

Abstract

Water demand regulation is commonly addressed using segmented tariff structures. In La Paz, Bolivia, access to water is a human right; therefore, monetization is a sensitive matter. The paper presents a brief evaluation of water tariff and water demand under an elasticity approach. Within the tariff scheme, a solidary tariff comprises an unusual segment, assigned to low-income users with less than 15 m3 of water consumption per month. An impact of such category was a reduction in water consumption of 21% between 2007 (the year when the rate was applied) and 2010. The econometric model adjusted for the same period shows the following: i) a negative relationship between the tariff and the water demand (i, e., a 10% increase in the rate implies a 3.3% decrease in water demand); ii) a positive relationship between total connections and total demand and; iii) a positive relationship between the total income of the water company and the total water demand. In addition to the econometric aspects, the complexity of user behavior would be based on much more complex aspects.