chapter  4
16 Pages

Who Manages Spain’s Water Resources? The Political and Administrative Division of Water Management

ByMaría Teresa Sánchez-Martínez, Manuel Salas-Velasco & Noelina Rodríguez-Ferrero

This chapter presents the information homogenized in order to compare the prices of water across cities; then the degree of tariff dispersion is assessed; and finally the causes are analyzed that explain the differences in prices. It describes the process of setting water tariffs in Spanish cities. The chapter discusses the background problem of explaining differentials in prices across cities. It presents a brief overview about the methodology used. The chapter provides a description of the data and the variables used in the analysis. It investigates the reasons for the differences in water prices between residential users in Spain. The chapter summarizes tariff information from each municipality into seven values corresponding to the cost of seven representative levels of water use, panel data regression analysis was used to analyze the causes that explain the differences in prices. Unfortunately, data about the actual costs of water services could not be obtained.