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An Assessment of the Impact of Charging for Provincial Water Use Permits

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  • Steven Renzetti
  • Diane Dupont

Abstract

Population and income growth and global warming have contributed to a growing concern regarding the availability of potable water supplies in Canada. While a number of provinces have already introduced fees for the permits required for direct water withdrawals, others give these permits away gratis. The paper assesses the likely impacts of introducing a charge for water permits upon the water use and production costs of the major water-using sectors in Ontario. These impacts are quantified by using a numerical analysis based upon econometric models of water use. The analysis indicates that by charging for water withdrawal permits the government can encourage water conservation and bring in new revenues, while doing relatively little to raise the industry's costs.

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File URL: http://links.jstor.org/sici?sici=0317-0861%28199909%2925%3A3%3C361%3AAAOTIO%3E2.0.CO%3B2-A
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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 25 (1999)
Issue (Month): 3 (September)
Pages: 361-378

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Handle: RePEc:cpp:issued:v:25:y:1999:i:3:p:361-378

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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
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Cited by:
  1. Zachariah, Oswald & Rollins, Kimberly S., 1999. "Optimal Economic Management Of Groundwater Quantity And Quality: An Integrated Approach," 1999 Annual meeting, August 8-11, Nashville, TN 21501, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Nicholas Rivers & Steven Groves, 2013. "The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 55(3), pages 419-445, July.

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