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FLEXIBLE PRICING IN WATER SUPPLY PLANNING–FOR FLEXIBLE ENGINEERS 1
Author(s) -
Gysi Marshall
Publication year - 1972
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1972.tb05983.x
Subject(s) - economic shortage , water supply , water pricing , constant (computer programming) , value (mathematics) , economics , function (biology) , consumption (sociology) , water scarcity , environmental science , water consumption , natural resource economics , water resource management , water resources , environmental engineering , water conservation , computer science , mathematics , statistics , ecology , social science , linguistics , philosophy , evolutionary biology , government (linguistics) , sociology , biology , programming language
. Preliminary results from a digital simulation model designed to test time‐varying water pricing policies are presented. Stochastic inflows feeding a water supply reservoir are assumed for a hypothetical community with defined demand functions. Prices are allowed to vary as a function of reservoir level, generally rising as reservoir levels fall. Increasing, decreasing and constant rates are tested. It is concluded that varying the price to reflect the increased value of scarce supplies can greatly reduce the risk of water supply shortages. It is also concluded that varying incremental (conservational) pricing policies not only reduces the risk of shortages, but also lowers the average price to the community while rewarding the low consumption user with lower average rates.