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Environmental aspects of water price formation. An empirical investigation of the cost of ground water protection

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  • W. Pfaffenberger
  • U. Scheele

Abstract

This paper tries to develop a scarcity price for groundwater resources in the Federal Republic of Germany (FRG). The present legal framework in the FRG is based on quantity regulation. This framework, as well as the quantitative structure of demand and supply, is analysed. In the absence of market values, a model calculation for water protection is carried out to estimate the scarcity price of water. According to this model calculation, the average water price should be twice as high as it is. The implications of such a price development for the demand side are being analysed. Copyright Kluwer Academic Publishers 1992

Suggested Citation

  • W. Pfaffenberger & U. Scheele, 1992. "Environmental aspects of water price formation. An empirical investigation of the cost of ground water protection," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(3), pages 323-339, May.
    • Handle: RePEc:kap:enreec:v:2:y:1992:i:3:p:323-339
    DOI: 10.1007/BF00376203
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    References listed on IDEAS

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    1. Lichty, Richard W. & Anderson, Curt L., 1985. "Assessing the Value of Water: Some Alternatives," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 15(2), pages 1-13.
    2. James E. T. Moncur & Richard L. Pollock, 1988. "Scarcity Rents for Water: A Valuation and Pricing Model," Land Economics, University of Wisconsin Press, vol. 64(1), pages 62-72.
    3. Helm, Dieter & Pearce, David W, 1990. "Assessment: Economic Policy towards the Environment," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(1), pages 1-16, Spring.
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    Cited by:

    1. Yongping Wei & Brian Davidson & Deli Chen & Robert White & Baoguo Li & Jiaboa Zhang, 2007. "Can Contingent Valuation be Used to Measure the in Situ Value of Groundwater on the North China Plain?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(10), pages 1735-1749, October.

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