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The financial impact of water rate changes
Author(s) -
Sang Wong H.
Publication year - 1982
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.1551-8833.1982.tb04975.x
Subject(s) - variable cost , revenue , natural resource economics , consumption (sociology) , water consumption , economics , production (economics) , non revenue water , variable (mathematics) , water use , fixed cost , business , environmental science , agricultural economics , water conservation , water resource management , finance , microeconomics , water resources , mathematics , ecology , social science , sociology , biology , mathematical analysis
If it is assumed that water rate increases will lead to decreases in water consumption, a detrimental effect on water utility revenues will result. As water production is reduced because of reduced demands, variable costs can be expected to decline accordingly. However, since most water utilities have large fixed costs, total costs will not decline proportionately.