Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90805
Authors: 
Strand, J.
Year of Publication: 
1998
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 21/1998
Abstract: 
This paper explores water pricing policy in Tegucigalpa, the capital of Honduras, in a political economy perspective. I argue that current water prices are too low and significantly below long-run marginal cost, and demonstrate that water prices must be raised significantly over the next ten years for projected demands and supplies to be in balance. I also argue that low water prices has a number of adverse allocational and distributional consequences. I then go on to discuss various (external and internal) actors' stakes in maintaining or changing the current water pricing regime, and discuss some potential mechanisms by which more efficient prices can be implemented.
Subjects: 
water
pricing
honduras
political economy
JEL: 
Q25
Q28
Document Type: 
Working Paper

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