Unintended consequences of increasing block tariffs pricing policy in urban water

2007 ◽  
Vol 43 (3) ◽  
Author(s):  
Momi Dahan ◽  
Udi Nisan
Keyword(s):  
Unintended Consequences ◽  
Urban Water ◽  
Pricing Policy ◽  
Increasing Block Tariffs

scholarly journals Urban water demand for manufacturing, construction and service industries: a microdata analysis

2021 ◽  
Author(s):  
Pilar Gracia-de-Rentería ◽  
Ramón Barberán ◽  
Jesús Mur
Keyword(s):  
Water Demand ◽  
Service Industries ◽  
Total Production ◽  
Urban Water ◽  
Translog Cost Function ◽  
Pricing Policy ◽  
Output Elasticity ◽  
The Impact ◽  
The City ◽  
Industrial Demand

Abstract This study analyses the industrial demand for urban water using a panel dataset of firms operating in the city of Zaragoza (Spain) and looking at three sectors (manufacturing, construction and services) disaggregated on 24 subsectors. Evidence in favour of using the marginal price rather than the average price is obtained, and the selection of the price is found to influence the value of the elasticities. Based on a translog cost function, the direct price elasticity of water (−0.86), the output elasticity (0.73) and the cross-price elasticities between water and capital, labour and supplies (being all of them substitutes) were estimated. By subsectors, the influence of price is only significant in those with a higher share of water in the total production cost. These results indicate that pricing can be used as a tool for managing water demand by promoting conservation of the resource. However, these results also indicate that the simultaneous use of other instruments is advisable to reinforce the impact of pricing policy on water consumption.

scholarly journals Urban Water Quality and Fertilizer Ordinances: Avoiding Unintended Consequences: A Review of the Scientific Literature

EDIS ◽  
2009 ◽  
Vol 2009 (2) ◽  
Author(s):  
George J. Hochmuth ◽  
Terril Nell ◽  
Jerry Sartain ◽  
Joseph Bryan Unruh ◽  
Chris Martinez ◽  
...  
Keyword(s):  
Policy Making ◽  
Scientific Literature ◽  
Soil Nutrient ◽  
Unintended Consequences ◽  
Urban Water ◽  
Urban Water Quality ◽  
Policy Making Process ◽  
Soil Nutrient Cycling ◽  
Open Dialogue ◽  
Soil And Water

SL-283, an 11-page illustrated fact sheet by George Hochmuth, Terril Nell, Jerry Sartain, Bryan Unruh, Michael Dukes, Chris Martinez, Laurie Trenholm, and John Cisar, discusses the research behind turfgrass growth, biology, and ecology, and soil nutrient cycling in the lawn. The unintended consequences of fertilizer ordinance restricted periods are presented to open dialogue among the stakeholders in the ordinance issue and to ensure that all information is presented to completely inform the policy-making process. Includes references. Published by the UF Department of Soil and Water Sciences, March 2009. Revised February 2011.  https://edis.ifas.ufl.edu/ss496 [Retired from EDIS website June 2020.]

scholarly journals Multiple Goals Dilemma of Residential Water Pricing Policy Reform: Increasing Block Tariffs or a Uniform Tariff with Rebate?

2018 ◽  
Vol 10 (10) ◽  
pp. 3526 ◽  
Author(s):  
Xunzhou Ma ◽  
Dan Wu ◽  
Shiqiu Zhang
Keyword(s):  
Water Conservation ◽  
Theoretical Perspective ◽  
Price System ◽  
Ecological Impacts ◽  
Poor People ◽  
Multiple Goals ◽  
Pricing Policy ◽  
Price Distortion ◽  
Increasing Block Tariffs ◽  
Tariff Structure

Water is a basic necessity and its allocation and utilization, especially pricing policies, impose various social, economic, and ecological impacts on social groups. Increasing block tariffs (IBTs) has gained popularity because it is expected to incentivize water conservation while protecting poor people benefiting from the redistribution effects because of its nonlinear tariff structure. However, it results in price distortion under certain circumstances. Researchers have also proposed an alternative practical price system and a uniform tariff with rebate (UTR), with the price level set equal to the marginal social cost and a fixed rebate allocated to the poor groups. This study proceeds with a simulation of the two pricing systems, UTR and IBTs, and empirically explores their fundamental merits and limitations. The results confirm the theoretical perspective that a water price system, compared with an optimal tariff system, simultaneously achieves multiple goals to the greatest possible extent.

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