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Nonpayment of water bills in G uatemala: Dissatisfaction or inability to pay?
Author(s) -
Vásquez William F.
Publication year - 2015
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1002/2014wr016610
Subject(s) - payment , order (exchange) , business , public economics , consumer behaviour , economics , environmental economics , marketing , actuarial science , finance
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.