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On the peak‐load pricing of urban water supply
Author(s) -
Feldman Stephen L.
Publication year - 1975
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/wr011i002p00355
Subject(s) - water pricing , equity (law) , peak load , metering mode , economics , environmental economics , environmental science , microeconomics , natural resource economics , econometrics , business , water resources , water conservation , automotive engineering , engineering , ecology , mechanical engineering , political science , law , biology
Peak‐load pricing through seasonal price increases without changes in metering and billing practices may produce distortions in efficiency and equity in urban water systems. Demand management models using parameters to evaluate the effect of seasonal price policy upon maximum day sprinkling demands may be misleading because of behavioral constraints to price responsiveness. Proposed are alternative pricing schemes that are likely candidates for improving the operating cost structure and design capacity of water supply systems without violating popular notions of equity.