THE POTENTIAL AND PROMISE OF WATER PRICING

The purpose of this article is to review current approaches to effective water pricing and to examine the gap between these academic prescriptions and the current state of water allocation policy and practice. In many jurisdictions, schemes of administered prices are likely to represent an attractiv...

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Bibliographic Details
Published in:Journal of international affairs (New York) 2008-03, Vol.61 (2), p.91-104
Main Authors: Ayoo, Collins A., Horbulyk, Theodore M.
Format: Article
Language:English
Subjects:
Administered prices
Analysis
Company pricing policy
Cost recovery
Economists
Efficiency
Foreign affairs
Government regulation
Groundwater
International
International politics
International relations
Laws, regulations and rules
Management
Marginal costs
Market prices
Price efficiency
Price levels
Prices and rates
Pricing
Pricing policies
Product price
Resource management
Supply chains
Surface water
THE GLOBAL CONTEXT
Water
Water allocation
Water conservation
Water consumption
Water management
Water markets
Water policy
Water prices
Water resource management
Water resources
Water shortages
Water supply
Water utilization
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Summary:The purpose of this article is to review current approaches to effective water pricing and to examine the gap between these academic prescriptions and the current state of water allocation policy and practice. In many jurisdictions, schemes of administered prices are likely to represent an attractive policy approach to promoting the overall efficiency of water use. The attainment of appropriate or efficient usage levels is synonymous with encouraging conservation and reuse, with investment and innovation in new technologies and practices and with achieving expected levels of quality and security. Unlike the allocations that might be reached in some private market transactions for water use, an advantage of administered pricing is that it offers the ability to include, as part of the prices charged, society's best estimates of social costs related to downstream or future users, instream flow uses, and so on. Unlike private market outcomes, administered pricing also offers the ability to make the water-pricing program revenue-neutral.
ISSN:0022-197X