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Issues On The Role Of Efficient Water Pricing For Sustainable Water Management

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  • Simona FRONE

    () (Institute of National Economy – Romanian Academy)

Abstract

This paper aims to highlight some of the main issues raised by developing and implementing the most appropriate approach to water pricing, and to induce a sustainable water management. Therefore, we define the concept and utility of water demand management as one objective of efficient water pricing. Next we analyse the basic economics and some important theoretical insights of water pricing. We further with state the main four inter-correlated principles of sustainable water pricing (full-cost recovery, economic efficiency,equity and administrative feasability) and the trends and challenges of their actual implementing in the water pricing policy of Romania and other EU countries. We end with a review of opinions, personal conclusions and recommendations on the actual opportunity, effectiveness and role of efficient water pricing in fulfilling the goals of sustainabilty.

Suggested Citation

  • Simona FRONE, 2012. "Issues On The Role Of Efficient Water Pricing For Sustainable Water Management," Romanian Journal of Economics, Institute of National Economy, vol. 34(1(43)), pages 84-111, June.
  • Handle: RePEc:ine:journl:v:1:y:2012:i:43:p:84-111
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    References listed on IDEAS

    as
    1. Bithas, Kostas, 2008. "The sustainable residential water use: Sustainability, efficiency and social equity. The European experience," Ecological Economics, Elsevier, vol. 68(1-2), pages 221-229, December.
    2. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
    3. AfDB AfDB, . "African Statistical Yearbook 2011," African Statistical Yearbook, African Development Bank, number 300.
    4. Simona FRONE, 2008. "Factors And Challenges Of Regionalization In The Water And Wastewater Sector," Romanian Journal of Economics, Institute of National Economy, vol. 27(2(36)), pages 185-200, December.
    5. Dalhuisen, Jasper & Groot, Henri de & Nijkamp, Peter, 1999. "The economics of water : a survey of issues," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    sustainable water management; demand management; efficient water pricing; sustainable cost recovery; equity;

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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