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Paying for Water: Policy Options and their Practical Implications
Author(s) -
THACKRAY J. E.
Publication year - 1992
Publication title -
water and environment journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.437
H-Index - 37
eISSN - 1747-6593
pISSN - 1747-6585
DOI - 10.1111/j.1747-6593.1992.tb00780.x
Subject(s) - sewerage , tariff , economics , water utility , water supply , price elasticity of demand , natural resource economics , environmental economics , microeconomics , environmental engineering , environmental science , international economics
Paying for water supply, wastewater and surface water sewerage and treatment, and river basin management, is considered against the four strategic options of using taxation, charges to users, accepting environmental damage, and charitable funding. The different social consequences of each are addressed. A fundamental appraisal of issues of cost analysis is provided, and often overlooked factors are identified. The merits of (a) alternative tariff forms including rising and falling blocks, (b) seasonal and time‐of‐day tariffs, and (c) cover/fixed charge approaches are analysed, together with the often more cost‐effective use of tariffs without meters for households. The important role of the engineering elasticity of demand is set alongside the more often discussed concept of economic elasticity.