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Urban water policy when environment inflows are uncertain
Citation
Sibly, A, Urban water policy when environment inflows are uncertain, Water Resources and Economics pp. 1-13. ISSN 2212-4284 (2019) [Refereed Article]
Copyright Statement
© 2019 Published by Elsevier B.V.
DOI: doi:10.1016/j.wre.2019.100149
Abstract
An urban water network with storage and uncertain environmental water inflows is modelled.
This three period model is analytically tractable, and allows for a straightforward study of the
relative economic impact of different policy regimes. The model is used to identify the water
authority's first best pricing policy, and its relation to long run marginal cost pricing. The model
is then used to identify the implications of adopting the most commonly used rationing method when environmental flows are uncertain: setting a smoothed priced (often LRMC exclusive of scarcity value) and using moral suasion, rather than pricing, to control the demand for water. The optimal manner to address water security is also addressed.
Item Details
Item Type: | Refereed Article |
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Keywords: | efficient urban water pricing, moral suasion, environmental uncertainty, storage levels |
Research Division: | Economics |
Research Group: | Applied economics |
Research Field: | Environment and resource economics |
Objective Division: | Environmental Management |
Objective Group: | Fresh, ground and surface water systems and management |
Objective Field: | Ground water quantification, allocation and impact of depletion |
UTAS Author: | Sibly, A (Dr Hugh Sibly) |
ID Code: | 134974 |
Year Published: | 2019 |
Deposited By: | Economics and Finance |
Deposited On: | 2019-09-17 |
Last Modified: | 2021-07-05 |
Downloads: | 0 |
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