IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v18y2010i3p129-134.html

Water scarcity: Can virtual water operators help?

Author

Listed:
  • Dominguez, Fernando

Abstract

The changing climate is likely to have an effect on water and sewerage sectors. To deal with this challenge regulators need consider ways to better signal the value of water, that is, such that water is more expensive where it is scarce. This paper shows that virtual water operators (VWO) could result in entrants internalising this value and provide regulators with an estimate of it. With water scarcity, entrants will face higher cost of entry as they will need to acquire expensive, if available, abstraction licences. Given these higher prices they will also be willing to pay higher prices to become a VWO in those areas with scarcity. This means that VWOs can help to reveal the real value of water. Further, by introducing these considerations into part of the incumbent's capacity, VWO also help to introduce this cost into the supply of the incumbent.

Suggested Citation

  • Dominguez, Fernando, 2010. "Water scarcity: Can virtual water operators help?," Utilities Policy, Elsevier, vol. 18(3), pages 129-134, September.
    • Handle: RePEc:eee:juipol:v:18:y:2010:i:3:p:129-134
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957-1787(10)00015-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Crandall Robert W. & Ingraham Allan T & Singer Hal J, 2004. "Do Unbundling Policies Discourage CLEC Facilities-Based Investment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-25, June.
    2. Duarte Brito & Pedro Pereira, 2010. "Access to Bottleneck Inputs under Oligopoly: A Prisoners’ Dilemma?," Southern Economic Journal, Southern Economic Association, vol. 76(3), pages 660-677, January.
    3. repec:aen:journl:2004v25-03-a05 is not listed on IDEAS
    4. Bourreau, Marc & Dogan, Pinar, 2004. "Service-based vs. facility-based competition in local access networks," Information Economics and Policy, Elsevier, vol. 16(2), pages 287-306, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saida Elfkih & Olfa Hadiji & Saker Ben Abdallah & Olfa Boussadia, 2023. "Water Accounting for Food Security: Virtual Water and Water Productivity in the Case of Tunisian Olive Oil Value Chain," Agriculture, MDPI, vol. 13(6), pages 1-16, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hrovatin, Nevenka & Švigelj, Matej, 2013. "The interplay of regulation and other drivers of NGN deployment: A real-world perspective," Telecommunications Policy, Elsevier, vol. 37(10), pages 836-848.
    2. Dogan, Pinar & Bourreau, Marc & Manant, Matthieu, 2010. "A Critical Review of the “Ladder of Investment†Approach," Scholarly Articles 4777447, Harvard Kennedy School of Government.
    3. Marc Bourreau & Pinar Dogan, 2006. ""Build-or-Buy" Strategies in the Local Loop," American Economic Review, American Economic Association, vol. 96(2), pages 72-76, May.
    4. Hahn, Robert & Evans, Lewis, 2010. "Regulating Dynamic Markets: Progress in Theory and Practice," Working Paper Series 4052, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    5. Nicholas Economides & Katja Seim & V. Brian Viard, 2008. "Quantifying the benefits of entry into local phone service," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 699-730, September.
    6. Koning, Kendall J. & Yankelevich, Aleksandr, 2018. "From internet “Openness” to “Freedom”: How far has the net neutrality pendulum swung?," Utilities Policy, Elsevier, vol. 54(C), pages 37-45.
    7. Junhui Li, 2020. "Transaction Cost and the Theory of Games: The “Prisoners’ Dilemma” as an Example," Man and the Economy, De Gruyter, vol. 7(1), pages 1-16, June.
    8. Sangwon Lee & Seonmi Lee & Hyemin Joo & Yoonjae Nam, 2021. "Examining Factors Influencing Early Paid Over-The-Top Video Streaming Market Growth: A Cross-Country Empirical Study," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    9. Lewis Evans, 2004. "The efficiency test under competition law and regulation in the small distant open economy that is New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(2), pages 241-264.
    10. Maya Bacache & Marc Bourreau & Germain Gaudin, 2014. "Dynamic Entry and Investment in New Infrastructures: Empirical Evidence from the Fixed Broadband Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(2), pages 179-209, March.
    11. Vitor Miguel Ribeiro, 2018. "Dark fiber price regulation in the absence of facilities-based competition," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 243-278, June.
    12. M. Burak Onemli & Joel Potter, 2014. "An empirical investigation of the stepping-stone hypothesis," Economics Bulletin, AccessEcon, vol. 34(4), pages 2220-2236.
    13. Michiel Bijlsma & Gijsbert Zwart, 2009. "Competition for access; spectrum rights and downstream access in wireless telecommunications," CPB Discussion Paper 123.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Pio Baake & Ulrich Kamecke, 2006. "New Networks, Competition and Regulation," Discussion Papers of DIW Berlin 568, DIW Berlin, German Institute for Economic Research.
    15. P. Baecker & G. Grass & U. Hommel, 2010. "Business value and risk in the presence of price controls: an option-based analysis of margin squeeze rules in the telecommunications industry," Annals of Operations Research, Springer, vol. 176(1), pages 311-332, April.
    16. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2011. "The Nature, Timing and Impact of Broadband Policies: a Panel Analysis of 30 OECD Countries," Department of Economics University of Siena 615, Department of Economics, University of Siena.
    17. Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2510, University Library of Munich, Germany.
    18. Marc Bourreau & Johan Hombert & Jerome Pouyet & Nicolas Schutz, 2011. "Upstream Competition between Vertically Integrated Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 59(4), pages 677-713, December.
    19. Bender, Christian M. & Götz, Georg, 2010. "Coexistence of service- and facility-based competition: The relevance of access prices for "make-or-buy"-decisions," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 3, International Telecommunications Society (ITS).
    20. Renata Sliwa, 2015. "Facility-based competition — toward more deregulation in telecommunications sector," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 14(2), pages 261-273, June.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:18:y:2010:i:3:p:129-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.