{"title":"Are Brazilian water auction prices affordable for vulnerable families?","authors":"Thalita Salgado Fagundes , Rui Cunha Marques , Tadeu Fabrício Malheiros","doi":"10.1016/j.jup.2024.101749","DOIUrl":null,"url":null,"abstract":"<div><p>A recent regulatory framework reform implemented in Brazil aims to universalize water and sanitation services by 2033. For financing and speeding up the construction of infrastructure, the new law encourages private sector participation through auctions promoted with the support of the Brazilian National Development Bank. However, the first auctions, with billions of dollars in price and investment effects, have raised concerns among practitioners over the impact on vulnerable families. We analyze the concessions in Alagoas and Rio de Janeiro states in Brazil to demonstrate how low-income families will struggle to pay their bills based on auction prices via the tariff, which may invite discontent. This research can inform subsequent water and sanitation auctions by highlighting that awards should not be based exclusively on auction prices, and affordability assessments should be mandatory.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":null,"pages":null},"PeriodicalIF":3.8000,"publicationDate":"2024-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724000420/pdfft?md5=7b68ed96a319be6c3846ee1d2ce31f4c&pid=1-s2.0-S0957178724000420-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Utilities Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0957178724000420","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
A recent regulatory framework reform implemented in Brazil aims to universalize water and sanitation services by 2033. For financing and speeding up the construction of infrastructure, the new law encourages private sector participation through auctions promoted with the support of the Brazilian National Development Bank. However, the first auctions, with billions of dollars in price and investment effects, have raised concerns among practitioners over the impact on vulnerable families. We analyze the concessions in Alagoas and Rio de Janeiro states in Brazil to demonstrate how low-income families will struggle to pay their bills based on auction prices via the tariff, which may invite discontent. This research can inform subsequent water and sanitation auctions by highlighting that awards should not be based exclusively on auction prices, and affordability assessments should be mandatory.
期刊介绍：
Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services.
Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.
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