Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery

In rural and peri‑urban areas of Central America, community water organizations (CWOs) provide water to 60 % of the population, thereby playing a pivotal role in achieving multiple Sustainable Development Goals. However, the underlying environmental, climatic, and institutional factors explaining th...

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Autores principales: Madrigal-Ballestero, Róger, Pacay, Eduardo, Evia, Pablo
Formato: Artículo
Lenguaje:Inglés
Publicado: Elsevier 2025
Materias:
Acceso en línea:https://repositorio.catie.ac.cr/handle/11554/12820
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author Madrigal-Ballestero, Róger
Pacay, Eduardo
Evia, Pablo
author_browse Evia, Pablo
Madrigal-Ballestero, Róger
Pacay, Eduardo
author_facet Madrigal-Ballestero, Róger
Pacay, Eduardo
Evia, Pablo
author_sort Madrigal-Ballestero, Róger
collection Repositorio CATIE
description In rural and peri‑urban areas of Central America, community water organizations (CWOs) provide water to 60 % of the population, thereby playing a pivotal role in achieving multiple Sustainable Development Goals. However, the underlying environmental, climatic, and institutional factors explaining the adoption of volumetric pricing from these water providers and its effect on service delivery are typically overlooked in the literature. In this paper, we address two issues. First, we test whether volumetric pricing affects the service water delivery in a rural setting, drawing on a random sample of cross-sectional data on 154 CWOs in Costa Rica, Guatemala, and Nicaragua. We find that volumetric pricing is associated with substantially more successful water delivery, even when conditioned on institutional capacity, environmental attributes, climatic conditions, and country-fixed effects. Despite this strong relationship, volumetric pricing has yet to be widely adopted, particularly in Nicaragua and Guatemala. Therefore, as the second goal, we try to identify the institutional and socio-ecological conditions in which volumetric pricing is adopted. We find that volumetric pricing is more likely used when communities (1) experience adverse environmental and climatic conditions associated with water scarcity and (2) have greater institutional capacity. Our results highlight the importance of examining the social-ecological system to assess the performance and adoption of water management institutions
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spelling RepoCATIE128202025-05-17T22:42:58Z Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery Madrigal-Ballestero, Róger Pacay, Eduardo Evia, Pablo Social-ecological systems Water tariffs Water scarcity Community-based management Local institutions Sede Central ODS 6 - Agua limpia y saneamiento ODS 10 - Reducción de las desigualdades In rural and peri‑urban areas of Central America, community water organizations (CWOs) provide water to 60 % of the population, thereby playing a pivotal role in achieving multiple Sustainable Development Goals. However, the underlying environmental, climatic, and institutional factors explaining the adoption of volumetric pricing from these water providers and its effect on service delivery are typically overlooked in the literature. In this paper, we address two issues. First, we test whether volumetric pricing affects the service water delivery in a rural setting, drawing on a random sample of cross-sectional data on 154 CWOs in Costa Rica, Guatemala, and Nicaragua. We find that volumetric pricing is associated with substantially more successful water delivery, even when conditioned on institutional capacity, environmental attributes, climatic conditions, and country-fixed effects. Despite this strong relationship, volumetric pricing has yet to be widely adopted, particularly in Nicaragua and Guatemala. Therefore, as the second goal, we try to identify the institutional and socio-ecological conditions in which volumetric pricing is adopted. We find that volumetric pricing is more likely used when communities (1) experience adverse environmental and climatic conditions associated with water scarcity and (2) have greater institutional capacity. Our results highlight the importance of examining the social-ecological system to assess the performance and adoption of water management institutions 2025-05-16T21:35:16Z 2025-05-16T21:35:16Z 2024-05-31 Artículo https://repositorio.catie.ac.cr/handle/11554/12820 openAccess en World Development Sustainability https://doi.org/10.1016/j.wds.2024.100163 12 páginas application/pdf Elsevier
spellingShingle Social-ecological systems
Water tariffs
Water scarcity
Community-based management
Local institutions
Sede Central
ODS 6 - Agua limpia y saneamiento
ODS 10 - Reducción de las desigualdades
Madrigal-Ballestero, Róger
Pacay, Eduardo
Evia, Pablo
Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery
title Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery
title_full Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery
title_fullStr Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery
title_full_unstemmed Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery
title_short Volumetric pricing in rural Central America: Drivers of adoption and potential effects on water delivery
title_sort volumetric pricing in rural central america drivers of adoption and potential effects on water delivery
topic Social-ecological systems
Water tariffs
Water scarcity
Community-based management
Local institutions
Sede Central
ODS 6 - Agua limpia y saneamiento
ODS 10 - Reducción de las desigualdades
url https://repositorio.catie.ac.cr/handle/11554/12820
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