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Pricing as a policy to reduce sewage costs
Author(s) -
Strudler Michael,
Strand Ivar E.
Publication year - 1983
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/wr019i001p00053
Subject(s) - per capita , sewage , environmental science , agricultural economics , gallon (us) , natural resource economics , business , environmental protection , economics , environmental engineering , waste management , engineering , environmental health , medicine , population
Compliance in Maryland with the Federal Clean Water Act will cost an estimated $3 billion. By charging a modest water/sewage fee for residential water use ($2 per thousand gallons), it is shown that sewage flows could be reduced, resulting in a compliance cost savings of $21 million. The cost reduction occurred even though only one third of the municipalities (heavy per capita water users) had to bear the increased price. Pricing policies are suggested as a method of reducing the costs of environmental standards.