Spatial Analysis of Urban Water Use Management in the Northern Border Region of Mexico

Gregorio Castro-Rosales,Ramiro Esqueda-Walle

doi:10.5539/ijbm.v15n11p126

Abstract

This paper estimates water price elasticity and examines spatial patterns of urban water management variables in 70 localities of more than 2 500 inhabitants of the six northern border Mexican states. By using ordinary least squares, spatial econometrics, Lagrange Multipliers, and exploratory spatial data analysis techniques, four variables were analyzed: water price (P), a Non-revenue water index (NRWI), total urban water connections, and water billed volume (BV). In accordance with the literature, we found that water demand is price sensitive but inelastic. Then price as an instrument for controlling water consumption does not offer an efficient alternative for reducing it, as water price increases would have to rise very high to reflect changes in consumption habits. Instead, it could be just a revenue-raising tool. Our findings also confirm a significant spatial autocorrelation in P and the NRWI. More interestingly, we found robust spatial effects on BV. This result implies that the performance of urban water utilities is determined by its counterparts&#39; performance in the region. Given the results and characteristics of water resources in the region, we argue that management policies must consider a regional approach to be effective.

Highlights

According to official data and estimates (INEGI, 2015; CONAPO, 2018), the urban population share in Mexico in 2018 was 81% (Note 1), which is much higher than the average world urbanization rate of 56 percent for the same year (Note 2)
From the data we proxied as efficiency variables, the Non-revenue Water Index (NRWI) and water price estimated as follows: Non-revenue water index (NRWI) =
Where NRWI is expressed in percentage, EV = water extracted volume (m3), BV = water billed volume (m3)

Summary

Introduction

According to official data and estimates (INEGI, 2015; CONAPO, 2018), the urban population share in Mexico in 2018 was 81% (Note 1), which is much higher than the average world urbanization rate of 56 percent for the same year (Note 2) This trend resulted from a constant transformation in the population structure in a relatively short period, as the share increased from 42.6 percent in 1950 to 66.3 percent in 1980 and, since to 81 percent in the most recent estimate. The structure of geographical distribution of population and its increasing trend to move to larger urban areas impose a significant challenge in guaranteeing access to water in sufficient quantity and quality, both for current and future generations For this reason, the article focuses on the NBS region as a case study, on 70 localities with more than 2 500 inhabitants (Note 3) (see Appendix)

Methods

Results

Conclusion