In this paper, we study the current water pricing system practised in Kigali, Rwanda, and evaluate the potential for efficiency gains by moving to other alternatives.
Notably, our numerical examples indicate that a change in the system for connection fees could make it easier for households to gain access to the piped water network, which should be beneficial both for household welfare and for health. Moreover, all households currently pay less than the cost recovery price for their water, suggesting that a change in the tariff block structure could lead to more efficient water use and improved funding for maintenance of the water network
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