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Urban water policy when environment inflows are uncertain

journal contribution
posted on 2023-05-20, 07:09 authored by Sibly, A
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.

History

Publication title

Water Resources and Economics

Pagination

1-13

ISSN

2212-4284

Department/School

TSBE

Publisher

Elsevier BV

Place of publication

Netherlands

Rights statement

© 2019 Published by Elsevier B.V.

Repository Status

  • Restricted

Socio-economic Objectives

Ground water quantification, allocation and impact of depletion

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