The budgetary situation of households with respect to water pricing in Spain

Abstract

This research examines the differences in the price for water supply for the Spanish households according to the type of household and the region of residence, which is of great relevance in terms of equity. The analysis covers the entire Spanish territory with the aim of establishing comparisons between regions, determining the current situation of the various household types and highlighting some considerations on the water policy financing. The evidence obtained shows how the invoice has an unequal impact on the various types of household, as well as that there are large differences between territories. Nevertheless, it is worth noting that the differences are greater as household income decreases, thus affecting households with tighter budgets or more members. For this reason, modifying the water price policy with the objective of inducing equality and efficiency, in addition to pursuing cost recovery, would be convenient.