This study examined the several occurrences of cross-subsidy in the Brazilian sanitation sector. We perceived its existence among the following groups: consumers, residential, commercial, industrial, and the public sector. The phenomenon also manifests itself under several guises: by level of consumption, since consumers who consume more pay a higher unit cost of water than others; among products, since water services are sometimes subsidized by sewage services; and among localities, for althought the costs of water collection, treatment, and distribution are not uniform among municipalities in a given state, the rates practised in certain cases are the same. As a result, we found that these mechanisms 1) induce superfluous consumption, 2) result in relatively wealthy people being subsidized by their less-favored brethren, and 3) generate intermunicipal conflicts.
CITATION STYLE
da Cruz, K. A., & Ramos, F. de S. (2016). Evidências de subsídio cruzado no setor de saneamento básico nacional e suas consequências. Nova Economia, 26(2), 623–651. https://doi.org/10.1590/0103-6351/2544
Mendeley helps you to discover research relevant for your work.