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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.

Suggested Citation

  • Steven Renzetti & Diane Dupont, 1999. "An Assessment of the Impact of Charging for Provincial Water Use Permits," Canadian Public Policy, University of Toronto Press, vol. 25(3), pages 361-378, September.
    • Handle: RePEc:cpp:issued:v:25:y:1999:i:3:p:361-378
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    Citations

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    Cited by:

    1. Joel Bruneau & Steven Renzetti & Michel Villeneuve, 2010. "Manufacturing Firms’ Demand for Water Recirculation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(4), pages 515-530, December.
    2. 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).
    3. Nicholas Rivers & Steven Groves, 2013. "The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(3), pages 419-445, July.
    4. Olmstead, Sheila M., 2014. "Climate change adaptation and water resource management: A review of the literature," Energy Economics, Elsevier, vol. 46(C), pages 500-509.
    5. Satya Mohapatra & Anne Mitchell, 2009. "Groundwater Demand Management in the Great Lakes Basin—Directions for New Policies," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(3), pages 457-475, February.
    6. Tahamipour, Morteza & Kalashami, Mohammad Kavoosi & Chizari, Amirhossein, 2015. "Irrigation Water Pricing in Iran: The Gap between Theory and Practice," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 5(2), June.

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