The Effect of Regulation on the Degree of Implementation of the Social Tariff in the Water and Sanitation Sector

The social tariff is a policy that provides water supply and sanitation services at affordable prices for financially vulnerable households. A state regulatory agency of the Brazilian water and sanitation sector conducted inspections and drafted a new regulation to promote the implementation of this policy. This article analyzes the effect of the regulation on the degree of implementation of the social tariff. It introduces an index that measures this implementation. Statistical tests indicate an increase in the implementation of the social tariff in all state regions after regulatory efforts. Econometric models suggest that the regulation increases the implementation of this policy. This article contributes to the literature by highlighting the importance of regulation in the implementation of pro-poor policies.