Water Tariffs and Affordability in Urban Water Supply and Wastewater Systems

Urban water utilities attempt to achieve financial sustainability by increasing tariffs to cover operational and maintenance costs and raise funds for infrastructural projects. Although the tariffs are relatively low compared to average household incomes in developed countries, concerns remain about the affordability in low-income groups. This study analyses the effects of major physical, institutional, and economic parameters that may impact water tariffs and affordability in 165 upper-middle and high-income cities. The groundwater source and ownership status show a noticeable effect on water tariffs, while the affordability seems to improve in the period 2017-2021 with however high variation among different cities