IDEAS home Printed from https://ideas.repec.org/a/vep/journl/y2006v114i4p544-560.html
   My bibliography  Save this article

An Exercise on the Optimal Use of Groundwater Resources

Author

Listed:
  • Laura CASTELLUCCI
  • Alessio D’AMATO

    (University of Rome ''Tor Vergata'')

Abstract

According to the EU water framework directive 2000/60, water tariffs should be based on the full cost recovery principle, including scarcity and external effects. To disregard these two aspects is not only conceptually misleading, as we try to show, but also leads to a wrong, distorted tariff. Our attempt to measure such distortion with respect to the italian case shows, for example, that water tariffs should be up to three times higher than the actual ones. That is to say, a significant correction in water prices is needed to achieve efficiency.

Suggested Citation

  • Laura CASTELLUCCI & Alessio D’AMATO, 2006. "An Exercise on the Optimal Use of Groundwater Resources," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 114(4), pages 544-560.
  • Handle: RePEc:vep:journl:y:2006:v:114:i:4:p:544-560
    as

    Download full text from publisher

    File URL: http://riss.vitaepensiero.it/scheda-articolo_digital/laura-castellucci-alessio-damato/an-exercise-on-the-optimal-use-of-groundwater-resources-000518_2006_0004_0545-150862.html
    Download Restriction: Yes

    More about this item

    Keywords

    externality; non-renewable resources; scarcity; tariff correction;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    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:vep:journl:y:2006:v:114:i:4:p:544-560. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vep - Vita e Pensiero). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.