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→Cross subsidies / Differential tariff systems
Regarding sanitation, the BMGF landscaping recognized differential tariffs in sewered systems charging below cost to poor users and above cost to others. These is a tipical example of cross subsidies (non-poor users subsidizing poor ones).
It is considered a good approach addressing that address the differences in users' income, aiming at recovering total system cost, which at present is often not the case. It is however difficult to ensure that subsidies reach the poorest groups in sanitation approaches [http://web.mit.edu/urbanupgrading/waterandsanitation/funding/estab-price-policy.html ] ; [http://www.sanicon.net/themes/intro.php3?theme=3].
This approach has high potential for connecting more people, but it is costly and may reduce interest for dry alternatives.
