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The pricing of water services in developing countries
Author(s) -
Munasinghe Mohan
Publication year - 1990
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/j.1477-8947.1990.tb00518.x
Subject(s) - sewerage , water supply , externality , water pricing , environmental economics , subsidy , business , investment (military) , water quality , resource (disambiguation) , natural resource economics , water resources , economics , microeconomics , water conservation , environmental science , computer science , environmental engineering , market economy , ecology , computer network , politics , political science , law , biology
This paper focuses on improving efficiency in the water and sewerage sectors through long‐run marginal cost pricing, adjusted for financial needs, externalities, second best considerations, lifeline tariffs and cross subsidization within an integrated water resource planning (IWRP) framework. Supply efficiency suggests that for a given price structure, an optimal long‐run investment plan and a corresponding level of supply quality should be determined which maximizes net social benefits. Supply efficiency also requires efficient operation of the water system, including optimization of losses.