Conflicting Objectives of Trinidad's Water Pricing Policy: A Need for Good Water Pricing and Governance

Abstract

Water pricing policy is determined by multiple, though conflicting objectives. This paper analyzes flat water charges for households based on property values, using Trinidad as a case study. A major finding is that this tariff is economically inefficient and encourages water wastage which becomes environmentally unsustainable. Also, while social equity is a main objective in using this method of water pricing, in reality this is compromised. A key contribution of this paper is that water supply is regular in many countries where flat rates are used, but Trinidad consumers suffer from water shortages. The politics of water pricing and poor governance explain this anomaly in service, economic inefficiency, social inequity, and environmentally unsustainable water management.