Premium
New Price Policies for Municipal Water Service
Author(s) -
Milliman Jerome W.
Publication year - 1964
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1964.tb01194.x
Subject(s) - marginal cost , point (geometry) , service (business) , economics , public economics , water industry , business , environmental economics , microeconomics , water supply , economy , engineering , environmental engineering , geometry , mathematics
This article discusses the need for new pricing policies for municipal water service. The author states that water rates have generally failed to reflect changing costs and have often been based upon legal and cost‐accounting principles which are defective from an economic point of view. The article briefly outlines some of the underlying economic principles and concepts that are important to economic efficiency including the equal‐price rule and the marginal‐cost rule. The Hopkinson threefold costs classification method is presented.