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Pricing irrigation water : a literature survey

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Author Info
Johansson, Robert C.

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Abstract

As water scarcity and population pressures increase, more countries are adopting water pricing mechanisms, as their primary means of regulating the consumption of irrigation water. The way to allocate water efficiently is to"get the prices right", but how to accomplish this is open to debate. Water pricing methods are sensitive to the social, physical, institutional, and political setting. To assess the costs and benefits of a particular irrigation project, the pricing method must be tailored to local circumstances. The author's survey of the resource economics literature on irrigation services and pricing, will be useful for developing comprehensive guidelines for water policy practitioners. He synthesizes accumulated knowledge about the implementation, and performance of various water pricing methods used over the past two decades: volumetric pricing (marginal cost pricing), output and input pricing, per area pricing, tiered pricing, two part tariffs, and water markets. As water scarcity and population pressures increase, more countries are adopting water pricing mechanisms as their primary means of regulating the consumption of irrigation water. The way to allocate water efficiently is to"get the prices right", but how to accomplish this is open to debate. Water pricing methods are sensitive to the social, physical, institutional, and political setting. To assess the costs and benefits of a particular irrigation project, the pricing method must be tailored to local circumstances. The author's survey of the resource economics literature on irrigation services and pricing, will be useful for developing comprehensive guidelines for water policy practitioners. He synthesizes accumulated knowledge about the implementation, and performance of various water pricing methods used over the past two decades: volumetric pricing (marginal cost pricing), output and input pricing, per area pricing, tiered pricing, two part tariffs, and water markets.

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Publisher Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2449.

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Date of creation: 30 Sep 2000
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Handle: RePEc:wbk:wbrwps:2449

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Related research
Keywords: Water and Industry; Water Conservation; Water Resources Law; Environmental Economics&Policies; Sanitation and Sewerage; Water and Industry; Water Conservation; Water Use; Water Supply and Sanitation Governance and Institutions; Town Water Supply and Sanitation;

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  1. Mabel Tidball & Jean-Philippe Terreaux, 2008. "Information revelation through irrigation water pricing using volume reservations," Working Papers 08-14, LAMETA, Universtiy of Montpellier, revised Sep 2008. [Downloadable!]
  2. Alyse Schrecongost & John Staatz & Boubacar Diallo & Mbaye Yade, 2004. "Water Pricing as a Tool for Integrated Water Resource Management: A Synthesis of Key Issues for Rural West Africa," International Development Policy Syntheses 73, Department of Agricultural Economics, Michigan State University. [Downloadable!]
    Other versions:
  3. Klein, K. K. & Nicol, Lorraine & Le Roy, Danny G., 2004. "Challenges for Water Researchers in Alberta in a Climate of Policy Uncertainty," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 05. [Downloadable!]
  4. He, Lixia & Tyner, Wallace E. & Doukkali, Rachid & Siam, Gamal, 2005. "Strategic Policy Options to Improve Irrigation Water Allocation Efficiency: Analysis on Egypt and Morocco," 2005 Annual meeting, July 24-27, Providence, RI 19467, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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This page was last updated on 2009-12-4.


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