The Water Pricing Effects on the Water Use of the Hungarian Households

Abstract

Hungary has remarkable surface and subsurface water resources which result in important comparative benefits. In Hungary, before the political change, the water prices were determined by the state. According to the underlying principles of the communism, the water prices were very low as well. After the political and economical change in Hungary, from 1990 the water market started to be oligopoly-like: today the water supply is managed by regional water-work companies which are operating under state coordinated frames (e.g. price allowance, state-fixed prices containing profit). The consequences of the changeover to the capitalism have several effects; there is a need for the validating of the real costs and the environmental aspects in the water prices. This new approach led to the increased water-prices. In this study, the reaction of the Hungarian households to the growing of the water-rates is examined. The research work is based on primary statistical data. The analysis shows that the water consumption is hardly decreased and the sparing of water became more important. The study overviews the Hungarian water consumption structure as well.