Urban water policy when environment inflows are uncertain

被引:0
作者
Sibly, Hugh [1 ]
机构
[1] Univ Tasmania, Tasmanian Sch Business & Econ, Private Bag 84, Hobart, Tas 7001, Australia
关键词
Efficient urban water pricing; Moral suasion; Environmental uncertainty; Storage levels; SURPLUS; PRICES; COSTS;
D O I
10.1016/j.wre.2019.100149
中图分类号
F [经济];
学科分类号
02 ;
摘要
An urban water network with storage and uncertain environmental water inflows is modelled. This three period model is analytically tractable, and allows for a straightforward study of the relative economic impact of different policy regimes. The model is used to identify the water authority's first best pricing policy, and its relation to long run marginal cost pricing. The model is then used to identify the implications of adopting the most commonly used rationing method when environmental flows are uncertain: setting a smoothed priced (often LRMC exclusive of scarcity value) and using moral suasion, rather than pricing, to control the demand for water. The optimal manner to address water security is also addressed.
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页数:13
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