Persistent Link:
http://hdl.handle.net/10150/297529
Title:
Promoting Conservation Via Water Rate Structures
Author:
Clarke, Andrew Jonathan
Issue Date:
2013
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
As economic growth and nontraditional uses place increasing strain on existing water resources, capturing the true value of these resources and ensuring that consumers understand and respond appropriately to this value is becoming both more difficult and more critical. Water utilities play a key role in the valuation and distribution of precious water resources. However, these utilities often have difficulty fulfilling their social obligation to encourage conservation and efficient use while collecting revenues sufficient to offset their costs. Increasingly, utilities are turning to pricing strategies to balance these two competing objectives. This paper explores how water utilities attempt to manage the trade-offs between water conservation and revenue sufficiency through rate structure design. The paperʼs comparative approach combines a review of the literature with an examination of current practice in several municipalities. The analysis suggests that, in practice, revenue sufficiency concerns often dominate in rate structure design, undermining conservation incentives. However, the literature suggests that water conservation and revenue sufficiency do not necessarily always stand in direct opposition; in fact, utilities can potentially develop rate structures that promote both. However, to do so requires an emphasis on economic analysis and the use of a broader, social accounting stance.
Type:
text; Electronic Thesis
Degree Name:
B.S.
Degree Level:
bachelors
Degree Program:
Honors College; Environmental and Water Resource Economics
Degree Grantor:
University of Arizona
Advisor:
Colby, Bonnie

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titlePromoting Conservation Via Water Rate Structuresen_US
dc.creatorClarke, Andrew Jonathanen_US
dc.contributor.authorClarke, Andrew Jonathanen_US
dc.date.issued2013-
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractAs economic growth and nontraditional uses place increasing strain on existing water resources, capturing the true value of these resources and ensuring that consumers understand and respond appropriately to this value is becoming both more difficult and more critical. Water utilities play a key role in the valuation and distribution of precious water resources. However, these utilities often have difficulty fulfilling their social obligation to encourage conservation and efficient use while collecting revenues sufficient to offset their costs. Increasingly, utilities are turning to pricing strategies to balance these two competing objectives. This paper explores how water utilities attempt to manage the trade-offs between water conservation and revenue sufficiency through rate structure design. The paperʼs comparative approach combines a review of the literature with an examination of current practice in several municipalities. The analysis suggests that, in practice, revenue sufficiency concerns often dominate in rate structure design, undermining conservation incentives. However, the literature suggests that water conservation and revenue sufficiency do not necessarily always stand in direct opposition; in fact, utilities can potentially develop rate structures that promote both. However, to do so requires an emphasis on economic analysis and the use of a broader, social accounting stance.en_US
dc.typetexten_US
dc.typeElectronic Thesisen_US
thesis.degree.nameB.S.en_US
thesis.degree.levelbachelorsen_US
thesis.degree.disciplineHonors Collegeen_US
thesis.degree.disciplineEnvironmental and Water Resource Economicsen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorColby, Bonnie-
All Items in UA Campus Repository are protected by copyright, with all rights reserved, unless otherwise indicated.