Short Commentary on The Financing of Water Treatment and the Balance of Payments for Water Services: Evidence from Municipalities in the Region of Valencia

The diversity of water services currently provided requires a variety of revenue formulas so that each service is financed by its own users. However, the lack of recovery of financial and environmental costs is a common problem in Spain. To this problem we have to add the lack of equity and co-ordination of the different tariffs applied. In particular, wastewater treatment and water supply in the Region of Valencia (Spain) are associated with such problems. Household payments for these services are related to the structure of the household or the size of the municipality. Thus, the aforementioned problems imply a lack of financing that prevents minimising the environmental impact of an activity such as water treatment which, due to its high energy consumption, produces significant greenhouse gas emissions.

Author(s): Marcos García-López, Joaquín Melgarejo, Borja Montano

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