An Analysis on Relationship Between Municipal Water Saving and Economic Development Based on Water Pricing Schemes

Huang, Wenlin; Wu, Bin; Wang, X.; Wang, H. T.

doi:10.1007/978-3-319-54612-4_34

Cited by 5 publications

(3 citation statements)

References 13 publications

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“…Among the different water pricing schemes, IBT facilitates cost recovery while simultaneously penalizing large consumption and subsidizing basic use for the poor. The execution of IBT, therefore, supports IWRM because of its conservation-oriented design and advancement of equity and efficient water use [34,56,[122][123][124][125]. The unit price of water is suggested such that the consumption in the first pricing block covers the extraction cost, while the use in the second block covers the cost of water degradation externalities.…”

Section: Methods and Datamentioning

confidence: 99%

Development of a Water-Pricing Model for Domestic Water Uses in Dhaka City Using an IWRM Framework

Kashem

Mondal

2022

Water

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Dhaka city is experiencing high water use and rapid declination of groundwater. The current water price in the city is low and based on a uniform rate. To arrest the resource degradation along with pursuing cost recovery and promoting social equity, this paper develops a new pricing model for domestic water uses using the integrated water resources management principles. The development is accomplished through estimation of domestic water usage, evaluation of current water prices, and assessment of groundwater degradation externalities in the Tejgaon area of the city using both primary and secondary data. Two economic and two environmental externalities are incorporated. The model is based on an increasing block tariff strategy, and the estimated unit prices for the first and second blocks are respectively 5% and 75% higher than the existing price. The model has the potential to reduce the domestic water use in the city by up to 27%, increase the revenue for the Dhaka Water Supply and Sewerage Authority by up to 75%, and reduce the water bill for poor households by up to 67%. The model has a great potential for practical deployment and the concept can also be applied to other cities and water uses.

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Section: Methods and Datamentioning

confidence: 99%

Development of a Water-Pricing Model for Domestic Water Uses in Dhaka City Using an IWRM Framework

Kashem

Mondal

2022

Water

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“…Even in this situation, a simple increase in tariffs in increasing steps may not be the most appropriate alternative (Dahan and Nisan, 2007), as the reaction of users may cause revenues not to evolve as expected . Thus, it would be advisable to analyse the adequacy of the current structure and assess the possibility of modifying it to improve the financing of the service and induce efficiency and equity in the system (Martin and Wilder, 1992;Huang et al, 2021;Marques and Miranda, 2020). In Spain, moreover, we find large differences in revenues and taxes related to water services between regions (García- García-Valiñas and Arbués Gracia, 2020;García-Valiñas and Arbués, 2021).…”

Section: Introductionmentioning

confidence: 96%

“…One of the most complex aspects a tariff must address to meet its objectives is the consumer's relationship with price and consumption. Thus, the consumer does not always react in the same way to price, but there is a stage where the relationship is linear, but once the necessary consumption is covered, the relationship becomes exponential because, at that point, the consumer's objective is to reduce their bill (Huang et al, 2021). Thus, the effectiveness of the tariff in influencing consumption is reduced until the necessary consumption is reached, so up to this point, the tariff is mainly a source of revenue (Gaudin et al, 2001;Martínez-Espiñeira and Nauges, 2004).…”

Section: Introductionmentioning

confidence: 99%

Alternative tariff structures and household composition: Evidence from Spain's Valencia region

2022

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Research on Water Price and Quantity to Meet the Basic Living Needs of Urban Residents Based on Water Conservation

Zhang,

Wang

2024

Water Resour Manage

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Water price is an economic approach to effectively promote urban residents to save water. However, due to the excessively large water volume and low water price of each step in the stepped water pricing model, the watersaving effect of urban residents is not obvious. Determining the rst-step water price and water volume for urban residents has become an urgent issue to be solved both in theory and practice. Based on the basic water demand characteristics of urban residents, this study employs the extended linear expenditure system model (ELES) and quadratic approximate ideal demand function model (QUAIDS) to formulate an improved water demand-price function. The improved function model can describe the nonlinear relationship between urban residents' water demand and water price. Then, based on the questionnaire survey data of Zhengzhou City, combined with the improved QUAIDS model and the Ramsey pricing method, a system of equations is built to calculate the rst-step water price and water volume that meet the basic living needs of urban residents. This method not only focuses on water conservation for urban residents but also considers their basic water needs and the water supply costs of enterprises. This study provides a theoretical basis and practical guidance for reforming urban water prices and promoting resource conservation in China. Highlight• By introducing the extended linear expenditure system model (ELES), this study constructs an improved quadratic approximate ideal demand function model (QUAIDS) based on the basic characteristic demand of urban residents and the nonlinear relationship between their water demand and water price.• Several factors are extended to this improved QUAIDS, such as water scarcity, household size, household disposable income, and water supply costs, and the The scarcity degree of water resources is innovative in this study.• Based on the questionnaire survey data of Zhengzhou City, this study construct a set of equations based on the improved QUAIDS, and combined with the Ramsey pricing to calculate the basic water price and water quantity to meet the basic living needs of urban residents.• The results show that the basic water volume for drived from this study for urban residents in Zhengzhou City is reduced by 35 cubic meters per year compared with the current water volume standard, and the water price is more higher, which can promote urban residents to save water by households.

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An Analysis on Relationship Between Municipal Water Saving and Economic Development Based on Water Pricing Schemes

Cited by 5 publications

References 13 publications

Development of a Water-Pricing Model for Domestic Water Uses in Dhaka City Using an IWRM Framework

Development of a Water-Pricing Model for Domestic Water Uses in Dhaka City Using an IWRM Framework

Alternative tariff structures and household composition: Evidence from Spain's Valencia region

Research on Water Price and Quantity to Meet the Basic Living Needs of Urban Residents Based on Water Conservation

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