Swiss Economist Backs Us Up: Portlanders Pay too Much for Sanitation

Writes Molly Danielsson, who, along with Mathew Lippincott, has received a stipend at Cewas in Switzerland.  Part of a group of entrepreneurs launching sanitation businesses, they are meeting and interviewing experts in the field.  Watch this space for reports of their discoveries.

Mat and I had a chance to hear Isabel Guenther speak on May 24th on the dynamics of sanitation and water investments as part of the Cewas program in  Swizerland.  Guenther is Professor of Development Economics at the Center for Development and Cooperation (NADEL) at the Swiss Federal Insitiute of Technology in Zurich (EGH).

Guenther found that people are willing to spend 1% of their income on sanitation services.  The average household in Portland spends $640 per year on sewer fees.  The median Portland household income in 2008 was $50,165.  Portlanders thus spend 1.3% of their income on sewer fees, this explains why the number two complaint to the mayor’s office is sewer rates.  I guess that’s what happens when folks are paying 30% more than they’re willing to pay.

Here’re the facts on Portland and on median household income.