Heterogeneity, Household Co-Production, and Risks of Water Services — Water Demand of Private Households with Multiple Water Sources

The international community has recognized access to water as a human right and
aims to achieve “universal and equitable access to safe and affordable drinking
water for all” (Target 6.1 of Sustainable Development Goal 6) by the year 2030
(UN Water 2018). Given that water is a scarce resource with competing uses and
manifold environmental impacts, it is essential to precisely understand the economic conditions of water services provision. Better understanding household demand for water services in particular is a prerequisite to develop policies that effectively and sustainably implement access goals. Traditionally, economic perspectives originating in industrialized countries have considered “water” as a homogeneous good with no direct substitute which is demanded quantitatively in dependence of its (marginal) price or a volumetric network tariff (Nauges and Whittington 2010).