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Supporting the Development of Municipal Water Policy: A study of the United States with Implications for Other Nations

Author

Listed:
  • Jeffrey A. EDWARDS
  • Alfredo A. ROMERO
  • R. Gary PUMPHREY

Abstract

The challenges faced by both developed and developing nations to collect, distribute, and conserve water are becoming even more difficult. While different strategies have been attempted by different governments, an economically viable solution appears to be the use of increasing block-rate tariffs. In the United States, determining its feasibility of implementation and potential for success currently involves large and expensive surveys paired with various marketing and advertising strategies. Our paper helps alleviate these logistical challenges by constructing a model that accounts for differences in block pricing structures across the continental U.S. and estimating the probability that a community with particular characteristics would have such a pricing structure. Using data on 467 communities in each of the 48 contiguous states, our model and conditioning set explains a substantial amount of block pricing variation across the U.S., aiding policy makers when exploring conservation alternatives to regulation. Our model can also lay the groundwork for similar studies in other nations that are contemplating similar conservation strategies.

Suggested Citation

  • Jeffrey A. EDWARDS & Alfredo A. ROMERO & R. Gary PUMPHREY, 2014. "Supporting the Development of Municipal Water Policy: A study of the United States with Implications for Other Nations," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(2).
  • Handle: RePEc:eaa:aeinde:v:14:y:2014:i:2_6
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    File URL: http://www.usc.es/economet/reviews/aeid1426.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. 38. Selected Readings on World Development in journal AEID: America, 2001-2020
      by MCG Blogs de Economía in Euro-American Association: World Development on 2020-01-17 20:24:00

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    More about this item

    Keywords

    Water policy; conservation; block pricing; municipal; price rationing.;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices

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