Nonpayment of water bills in Guatemala: Dissatisfaction or inability to pay?

Abstract

This paper investigates nonpayment behavior in Guatemala. Determinants of nonpayment behavior are identified through zero-inflated negative binomial regression models in order to take into account particular distributional characteristics of the amount of outstanding payments. Findings indicate that nonpayment behavior is a demonstration of consumer dissatisfaction with current water services. The amount of outstanding bill payments also responds to system unreliability. Results also suggest that nonpayment behaviors are more prominent in community-managed systems than in municipal systems. No evidence was found on a potential relationship between nonpayment behavior and household income. Policy implications are discussed. Key Points: This paper investigates nonpayment behavior in Guatemala Nonpayment behavior is a demonstration of consumer dissatisfaction No relationship was found between nonpayment behaviors and income.