Water Pricing Experiences and Innovations

Dinar, Ariel; Pochat, Víctor; Albiac-Murillo, José

doi:10.1007/978-3-319-16465-6

Cited by 46 publications

(6 citation statements)

References 66 publications

(94 reference statements)

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“…CC BY 4.0 License. coefficient "rxy" of 0.398, this may be useful given the lack of information regarding drought and its economic impacts on the study area.In Brazil, each state-owned sanitation company has its own water charging policy, where the vast majority use block tariffs as a pricing policy, including SABESP(De Andrade Filho et al, 2015;Mesquita and Ruiz, 2013;Ruijs et al, 2008). In Sao Paulo State, the tariff policy system is regulated by Decree 41.446/96, also for services provided by SABESP.…”

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confidence: 99%

Economic impacts of drought risks for water utilities through Severity-Duration-Frequency framework under climate change scenarios

Arias

Mohor

Taffarello

et al. 2017

Preprint

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10Climate variability and increasing water demands prioritize the need to implement planning 11 strategies for urban water security in the long and medium term. However, actions to manage 12 the drought risk impacts entail great complexity, such as the calculation of economic losses The model framework is applied to the Cantareira Water Supply System for Sao Paulo 27Metropolitan Region, Brazil, with severe vulnerability to droughts. By using hydrological

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confidence: 99%

Economic impacts of drought risks for water utilities through Severity-Duration-Frequency framework under climate change scenarios

Arias

Mohor

Taffarello

et al. 2017

Preprint

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“…1 Theoretical and conceptual research has long argued that putting the "right price tag" on water can efficiently reallocate irrigation water towards other uses (Dinar and Subramanian, 1997;Tsur and Dinar, 1997). Echoing these results, several governments worldwide have integrated innovative water pricing instruments into their legal bodies to save water (Dinar et al, 2015a). For example, Article 9 of the EU Water Framework Directive states: "[…] water pricing policies provide adequate incentives for users to use water resources efficiently, and thereby contribute to the environmental objectives of this directive" (OJ, 2000).…”

Section: Rationalementioning

confidence: 99%

Influence of crop-water production functions on the expected performance of water pricing policies in irrigated agriculture

Sapino

Pérez-Blanco

Gutiérrez‐Martín

et al. 2022

Agricultural Water Management

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Agricultural economics Water Programming Models (WPM) has found that irrigators in water scarce areas have a rather inelastic response to water prices, making water pricing cost-ineffective towards water saving. We hypothesize that the predicted water saving performance of pricing is significantly underestimated by issues of model structure, due to the exclusion of deficit irrigation from the set of decision variables available to agents in conventional WPM. To test our hypothesis, we develop a model that integrates a continuous crop-water production function into a positive multi-attribute WPM, which allows us to assess agents' adaptive responses to pricing through deficit irrigation. The model is illustrated with an application to the El Salobral-Los Llanos irrigated area in Spain. Our results show that incorporating deficit irrigation as an adaptation option makes the water demand curve significantly more elastic as compared to an alternative model setting where deficit irrigation is precluded. We conclude that ignoring deficit irrigation can lead to a significant underestimation of the cost-effectiveness of water pricing towards water saving.

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“…A water tariff is a charge for accessing and using water that has been processed in some way, such as storage in a reservoir or transmission through a channel or pipe . Tariffs are commonly used by utilities and irrigation companies to charge water users for the fixed and variable costs of water provision in both rich and poor countries (see Dinar et al, 2015;OECD, 2010 for case studies and Grafton, Chu, & Wyrwoll, 2020, for an overview of water tariff design). Here, we consider how water tariffs could complement existing mechanisms by enabling reallocation of water outside the boundaries defined by operation constraints.…”

Section: Water Tariffsmentioning

confidence: 99%

Reforming for resilience: delivering ‘multipurpose hydropower’ under water and energy risks

Wyrwoll

Grafton

2021

International Journal of Water Resources Development

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Multipurpose hydropower reservoirs are regularly framed as water security and climate change solutions. Although multipurpose projects can and do deliver a range of water services, 'win-win' outcomes are not guaranteed. Emerging water and energy risks are altering the net benefits from operating reservoirs to deliver hydropower generation, water supply, flood control, or other purposes. This paper shows that new hydropower governance approaches are needed to efficiently and fairly reallocate water under risks. We demonstrate that dynamic water reallocation is fundamental to the resilience of multipurpose reservoir systems and examine three potential reforms: periodic relicensing, water tariffs, and hydropower sustainability performance bonds.

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Water Pricing Experiences and Innovations

Cited by 46 publications

References 66 publications

Economic impacts of drought risks for water utilities through Severity-Duration-Frequency framework under climate change scenarios

Economic impacts of drought risks for water utilities through Severity-Duration-Frequency framework under climate change scenarios

Influence of crop-water production functions on the expected performance of water pricing policies in irrigated agriculture

Reforming for resilience: delivering ‘multipurpose hydropower’ under water and energy risks

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