Despite the recent improvements, there is still a problem of access to WASH services. This problem access is linked to poverty and inequality, which in turn cause difficulties in accessing water, thus creating a vicious cycle. This article analyses this vicious cycle using data from international organisations related to these issues. These data show how the lack of water access leads to limitations for households, which are deprived of employment or/and education due to the difficulty in obtaining water. This opportunity cost is the main mechanism through which the feedback between lack of access to water and economic poverty occurs. Not being able to obtain employment or/and education makes it impossible to get out of a precarious situation, which prevents the wider society to benefit from any economic gain, which in turn slows down the achievement of the goal of guaranteeing access to water for all. The responsibility lies with national and international institutions, which should not only focus on obtaining the necessary financial resources for infrastructure improvements, but also on having adequate governance to ensure water sustainability and equity.
Wastewater reuse is an activity that reduces pollution from discharges while increasing the available water resources. However, the high financial costs of this activity affect the viability of projects, either because of low water productivity or because of the presence of a cheaper alternative, such as natural water sources. The existence of environmental or social benefits makes reuse a positive option for society for its environmental and social benefits. This leaves the public sector to decide whether the benefit obtained justifies its participation in the development of reuse programs, for which it is necessary to use a tool such as cost-benefit analysis, which combines diverse costs and benefits. This article studies the potential for water reuse in Spain and the importance of informed decision-making, based on information regarding water stress, wastewater reuse, and the case study of the Canal de Isabel II (Madrid). The results confirm the potential of wastewater reuse; agriculture has a water productivity below EUR 1 per cubic meter and industry and services need their own sources of water, but financial constraints prevent the greater use of reclaimed water in all economic sectors and public intervention is necessary to obtain the optimum scenario for society. The case study from Madrid that we have analyzed in this paper shows the importance of considering all factors, since the results of prioritizing the financial criterion would have been detrimental to society, in the form of EUR 200 million in environmental damage, while EUR 740 million of non-financial benefits would make wastewater reuse an advantageous alternative for society, thus justifying the public investment.
This research seeks to determine and analyze the reaction to an increase in the water invoice with the aim of introducing improvements in wastewater treatments. To this end, the purification situation is analyzed and the price elasticities of demand are obtained through Ordinary Minimum Squares. The results show that there are several small noncompliant treatment plants, as well as a complex interaction among consumption, price, and income. In many cases, the results offer small or significant differences without a clear pattern. However, it highlights the number of household members as it is strongly related to consumption and price and not considering it in the elaboration or modification of the water tariff would lead to inefficiencies. A reduction in revenue has also been found due to the strong consumer reaction, so it is necessary to assess in more depth what kind of price change would be most appropriate, as well as whether such measures would be best suited to address the problem.
Energy consumption is one of the main costs faced by households, both financially and environmentally. This article analyses the energy consumption of Spanish households and the cost of installing solar panels in order to determine the potential of this form of energy production on a household level. The results show that households with a larger number of members have a higher total consumption but a lower consumption per person. The composition of the household is therefore a key determinant of the potential savings from solar panels. This alternative is financially viable, as the unit price paid for energy in these households is between €0.28 and €0.29 per kilowatt-hour (kWh), while the average cost per kWh obtained from the panels is between €0.15 and €0.21. However, the current public subsidies for the installation of solar panels in Spain are inaccessible to 68% of the country’s households, and there are difficulties in the distribution of energy in neighbouring communities. In other words, although in financial terms home PV self-consumption is a financially viable option, the inability to obtaining subsidies makes the initial investment a major barrier for many households.
Pollution from wastewater discharges requires the treatment of all wastewater to maintain water bodies in good condition, as well as the possibility of reusing this water. Thus, wastewater treatment is an activity that has developed significantly in the Region of Valencia and has significant costs, including energy, which represents the main economic cost and an important environmental cost. In this way, efficiency and adequate financing of this activity are essential to minimise our environmental impact. However, the main funding tool currently does not allow us to address this issue, so we have a wastewater treatment with a high environmental cost in the form of greenhouse gas emissions. This tool is part of the revenues of water services, so it is not entirely independent, but it also seeks to prevent households from paying too high a total price. This leads to a situation where changes are needed to improve the financing of the different water services, as the financial resources obtained are insufficient and do not allow the current environmental problems to be solved. The analysis shows the importance of an appropriate tariff structure, as well as the need to include aspects such as water pollution and energy costs in the wastewater treatment tariff.
This research examines the water tariff applied to Spanish households with the aim of determining the adequacy of the river-basin approach established by the water framework directive (WFD). The analysis pays particular attention to Spain’s interregional differences in water prices, as well as determining the most influential factors in household water consumption. The results achieved through minimum ordinary squares and 2-stage least squares show the great influence of relevant factors such as the composition of the household, as the most populated households are penalized by the structure of the rate. In addition, there is evidence of inefficiency of the approach derived from the existence of regional differences, since the prices are higher in those regions where resources are reduced, a fact related to the higher cost of service. Thus, taking into account the excessive attention to the cost of the service, the results obtained allow to propose a change in the rate with the aim of balancing prices between regions taking into account factors such as the structure of the household or income.