Estimación de la tarifa óptima de agua potable para el sector urbano residencial del cantón Gualaceo

Abstract

This project presents a tap water rate proposal which is provided by the company EMAPAS-G EP. In order to do so we estimate the water demand by using a semi-logarithmic functional form and the technique of instrumental variables in two stages (2SLS), so the problem of endogeneity can be addressed. We concluded that the quantity demanded decreases by 2.14% in face of an increase of one cent in the price. On the other hand, the costs are estimated through the Trans-log cost function, resulting in 0.34 and 0.51 cents, the marginal cost and the average cost, respectively. The fixing of a rate at marginal cost benefits the users that maximize their surplus, while a rate at average cost allows the company to pay operating costs; but these rates can cause users to inefficiently consume this resource. Finally, a growing block rate is proposed that consists of two parts, the fixed part of $ 5.53 and the variable part comprised of seven blocks, the first block of 0.12 cents and the last of 0.45 cents; This tariff schedule is built on criteria of equity, accessibility, financial and economic sufficiency.