Impact of Increased Access and Price on Household Water Use in Urban Bolivia

Abstract

Using the 1994 Bolivian Integrated Household Survey, this study analyzes the equity implications of urban water sector reform including both increased water prices and increased access to piped water. Household water expenditures are examined by income decile, and low-income households are found to spend a higher percentage of income on water than high-income households. However, households purchasing from private water vendors could benefit from obtaining piped water, because regression analysis shows that on average, these households spend more on water than those with piped water inside their buildings or yards. This differential was the greatest in the city of Cochabamba, which also had the largest percentage of households purchasing from private water vendors. To understand the equity impact of water reform, the effects on both prereform users of piped water and those without access to piped water must be considered.