Evaluating tariff structures in public infrastructure: A literature review

Determining tariffs for public services and utilities involves a complex interplay between financial sustainability, social equity, and economic efficiency. This study adopts a posthumanist lens and employs a Systematic Literature Review (SLR) using the PRISMA framework to examine how tariff-setting mechanisms are formulated, particularly in the context of developing economies. A total of 14 high-quality open-access articles were selected through a rigorous process of identification, screening, eligibility, and quality appraisal using the Mixed-Methods Appraisal Tool (MMAT). Findings reveal that traditional cost-based pricing methods—such as the rate of return (RoR) and long-run average cost (LRAC) models—remain foundational, but are increasingly complemented by multidimensional frameworks that consider regulatory structures, social justice, environmental concerns, and technological innovations. Pricing models like Increasing Block Tariffs (IBTs) and time-of-use tariffs are widely applied to promote efficiency and conservation while maintaining affordability. However, their success heavily depends on governance quality, demand forecasting, and regulatory oversight. Technological advancements, including smart metering and real-time analytics, are reshaping tariff structures by enabling dynamic, data-driven pricing systems. Environmental considerations, such as the integration of renewable energy sources, are also becoming integral in designing adaptive and forward-looking tariff mechanisms. Moreover, political economy factors—such as tariff mimicking and cross-subsidization—affect both pricing fairness and financial sustainability. Best practices from countries like Thailand, Brazil, and Estonia underscore the need for a transparent and responsive regulatory environment to ensure effective tariff-setting. This study concludes that future tariff models must adopt a multicriteria approach integrating economic, social, regulatory, and technological factors. Policymakers should prioritize inclusive, adaptable, and transparent pricing strategies that align with sustainability goals, enhance service quality, and support equitable access, consistent with the broader posthumanist perspective on public governance.