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Allocation and Pricing at the Water District Level

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  • David Zilberman

Abstract

Efficient water pricing schemes are introduced for nonprofit water agencies, where members have property rights based upon historical usage. The existing average cost rate design is compared with the proposed designs, “active trading” and “passive trading.” Both schemes lead to efficiency, but “passive trading” has operational advantages since it generates less transaction costs than “active trading.” Block rate pricing is shown to be suboptimal and inferior to “passive trading.” An example from the Israeli water economy is used as an empirical illustration. Copyright 1997, Oxford University Press.

Suggested Citation

  • David Zilberman, 1997. "Allocation and Pricing at the Water District Level," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 952-963.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:3:p:952-963
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    File URL: http://hdl.handle.net/10.2307/1244435
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    Cited by:

    1. Xie, Yang & Zilberman, David, 2014. "The Economics of Water Project Capacities and Conservation Technologies," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169820, Agricultural and Applied Economics Association.
    2. Qureshi, M. Ejaz & Shi, Tian & Qureshi, Sumaira E. & Proctor, Wendy, 2009. "Removing barriers to facilitate efficient water markets in the Murray-Darling Basin of Australia," Agricultural Water Management, Elsevier, vol. 96(11), pages 1641-1651, November.
    3. Schuck, Eric C. & Green, Gareth P. & Sunding, David L., 2000. "Irrigation Water Rate Reform And Endogenous Technological Change," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36463, Western Agricultural Economics Association.
    4. Michelsen, Ari M. & McGuckin, J. Thomas & Taylor, R. Garth & Huffaker, Ray G., 1998. "Irrigation District Adoption Of Water Conserving Rate Structures," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Tala Qtaishat, 2013. "Impact of Water Reallocation on the Economy in the Fertile Crescent," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(10), pages 3765-3774, August.
    6. Ejaz Qureshi, Muhammad & Ranjan, Ram & Ejaz Qureshi, Sumaira, 2010. "An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), March.
    7. Schuck, Eric C. & Green, Gareth P., 2002. "Supply-based water pricing in a conjunctive use system: implications for resource and energy use," Resource and Energy Economics, Elsevier, vol. 24(3), pages 175-192, June.
    8. Yoris A. Au, 2009. "Credit Card Payment Processing in Electronic Commerce: An Analysis of the Bucket Pricing Strategy," Working Papers 0091, College of Business, University of Texas at San Antonio.
    9. Hussain, Intizar, 2004. "Have low irrigation service charges disadvantaged the poor?," Conference Papers h033989, International Water Management Institute.
    10. Xie, Yang & Zilberman, David, 2014. "The Economics of Water Project Capacities under Optimal Water Inventory Management," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6c24636b, Department of Agricultural & Resource Economics, UC Berkeley.
    11. Friedman, A., 2010. "Water-Saving Technology and Efficient Tariffs," Journal of the New Economic Association, New Economic Association, issue 8, pages 35-53.
    12. Alan Murray & Patricia Gober & Luc Anselin & Sergio Rey & David Sampson & Paul Padegimas & Yin Liu, 2012. "Spatial Optimization Models for Water Supply Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(8), pages 2243-2257, June.
    13. M Ejaz Qureshi & Tian Shi & Sumaira Qureshi & Wendy Proctor & Mac Kirby, 2009. "Removing Barriers to Facilitate Efficient Water Markets in the Murray Darling Basin – A Case Study from Australia," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-02, CSIRO Sustainable Ecosystems.
    14. Francesco Prota, 2002. "Water Resources And Water Policies," Working Papers 8_2002, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

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