Water Price Effects on Consumption and Territorial Imbalances in Spain in the Context of the Water Framework Directive

Marcos García-López,Borja Montano

doi:10.3390/w12061604

Abstract

This research examines the water tariff applied to Spanish households with the aim of determining the adequacy of the river-basin approach established by the water framework directive (WFD). The analysis pays particular attention to Spain’s interregional differences in water prices, as well as determining the most influential factors in household water consumption. The results achieved through minimum ordinary squares and 2-stage least squares show the great influence of relevant factors such as the composition of the household, as the most populated households are penalized by the structure of the rate. In addition, there is evidence of inefficiency of the approach derived from the existence of regional differences, since the prices are higher in those regions where resources are reduced, a fact related to the higher cost of service. Thus, taking into account the excessive attention to the cost of the service, the results obtained allow to propose a change in the rate with the aim of balancing prices between regions taking into account factors such as the structure of the household or income.

Highlights

In Spain, the geographical and temporary distribution of water resources is a problem according to its imbalances between demand and supply [1]
Regional differences are observed depending on certain characteristics such as available resources, climatology, population or economic activities that are carried out, as this has a direct effect on water consumption [5]
The estimated models included several relevant factors that allow to exclude them from the regional differences, a significant number of aspects linked to the socioeconomic conditions or to the situation of the water supply could not be assessed

Summary

Introduction

In Spain, the geographical and temporary distribution of water resources is a problem according to its imbalances between demand and supply [1]. The incidence of droughts is unstable and annual rainfall has declined despite the increase in torrential rains [2] An example of this is the water exploitation index plus (WEI+) calculated by the European Environment Agency for each European river basin. In the autumn-winter months the pressure on water resources is lower than during the spring–summer months This seasonal nature of the water supply requires specific measures depending on the time of year to solve the problem [3], which is supported by differences in terms of the consumption pattern [4]. Regional differences are observed depending on certain characteristics such as available resources, climatology, population or economic activities that are carried out, as this has a direct effect on water consumption [5]. Even in regions with similar characteristics, the influence of these factors may be different so the regulatory and

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