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Efficiency and Equity in Natural Resources Pricing: A Proposal for Urban Water Distribution Service

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  • Maria García-valiñas

Abstract

This paper focuses on the design of optimal prices for urban water distribution service. In this context, pricing should be aimed at achieving efficiency, equity, financial aspects, and/or public acceptability and transparency. The proposed tariffs are based on the theoretical frameworks suggested by Ramsey (1927) and Feldstein (1972). As a prior step, estimations of urban water demands and water costs are carried out for the Spanish municipality of Seville. Finally, an empirical comparison, in welfare terms, is conducted between the proposed tariffs and those applicable in the year 2000. Copyright Springer 2005

Suggested Citation

  • Maria García-valiñas, 2005. "Efficiency and Equity in Natural Resources Pricing: A Proposal for Urban Water Distribution Service," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(2), pages 183-204, October.
    • Handle: RePEc:kap:enreec:v:32:y:2005:i:2:p:183-204
    DOI: 10.1007/s10640-005-3363-0
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    Citations

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    Cited by:

    1. Lehmann, Paul, 2011. "Making water affordable to all: A typology and evaluation of options for urban water pricing," UFZ Discussion Papers 10/2011, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    2. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
    3. Roberto Martínez-Espiñeira, 2007. "An Estimation of Residential Water Demand Using Co-Integration and Error Correction Techniques," Journal of Applied Economics, Taylor & Francis Journals, vol. 10(1), pages 161-184, May.
    4. María Ángeles García-Valiñas & Sara Suárez-Fernández, 2022. "Are Economic Tools Useful to Manage Residential Water Demand? A Review of Old Issues and Emerging Topics," Post-Print hal-04067487, HAL.
    5. Rita Martins & Carlota Quintal & Eduardo Barata & Luís Cruz, 2010. "Water Pricing and Social Equity in Portuguese Municipalities," GEMF Working Papers 2010-17, GEMF, Faculty of Economics, University of Coimbra.
    6. Marie-Estelle Binet & Fabrizio Carlevaro & Michel Paul, 2014. "Estimation of Residential Water Demand with Imperfect Price Perception," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 561-581, December.
    7. Rita Martins & Fernando Coelho & Adelino Fortunato, 2012. "Water losses and hydrographical regions influence on the cost structure of the Portuguese water industry," Journal of Productivity Analysis, Springer, vol. 38(1), pages 81-94, August.
    8. Rita Martins & Adelino Fortunato & Fernando Coelho, 2006. "Cost Structure of the Portuguese Water Industry: a Cubic Cost Function Application," GEMF Working Papers 2006-09, GEMF, Faculty of Economics, University of Coimbra.
    9. Li, Yumin & Jiang, Yan & Dong, Changgui, 2023. "Electricity cross-subsidies in China: Social equity, reverse Ramsey pricing, and welfare analysis," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 403-417.
    10. Arjan Ruijs, 2007. "Welfare and Distribution Effects of Water Pricing Policies," Working Papers 2007.92, Fondazione Eni Enrico Mattei.

    More about this item

    Keywords

    optimal tariffs; public sector pricing; social welfare; water demand and supply; D60; H20; Q21; Q25;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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