Persistent Link:
http://hdl.handle.net/10150/300126
Title:
Comparison of Water Pricing Structures from a Collective Utility Viewpoint
Author:
Metler, Bill; Duckstein, Lucien
Affiliation:
Systems Engineering Department, University of Arizona, Tucson, Arizona 85721
Issue Date:
23-Apr-1971
Rights:
Copyright ©, where appropriate, is held by the author.
Collection Information:
This article is part of the Hydrology and Water Resources in Arizona and the Southwest collections. Digital access to this material is made possible by the Arizona-Nevada Academy of Science and the University of Arizona Libraries. For more information about items in this collection, contact anashydrology@gmail.com.
Publisher:
Arizona-Nevada Academy of Science
Journal:
Hydrology and Water Resources in Arizona and the Southwest
Abstract:
As a result of continually lowering water tables in the arid regions of the west, many people are beginning to realize that water should be treated like any other rare resource, letting supply and demand factors regulate its distribution. Three types of price structures are used by water agencies: (1) the flat rate system (2) the step rate system and (3) the block rate system. Each of these structures may be progressive or regressive. At present, Tucson's only source of water lies underground and will presumably decrease as the population increases. To optimize the benefits to the community, it may be necessary to decrease not only average consumption but also summertime peak consumption for swimming pools, evaporative coolers and lawn sprinkling. Currently, Tucson uses a regressive block rate pricing structure. Using the theory of collective utility, a model is developed for use in comparing 2 price structures in an effort to define a monetary value for water conservation. It is concluded that the change in collective utility, du, which is a measure of the worth of change from economic state 1 to 2, is the best measure of price changes in arid areas. The model shows that Tucson water consumption would be lowered and money would be lost with either price structure, but with the permanent change, monetary flow of goods would be greater than under the seasonal structure.
Keywords:
Water resources development -- Arizona.; Hydrology -- Arizona.; Hydrology -- Southwestern states.; Water resources development -- Southwestern states.; Systems analysis; Municipal water; Water conservation; Economic efficiencies; Model studies; Groundwater; Arizona; Arid lands; Economic impact; Water demand; Water supply; Water values; Mathematical models; Regressive taxes; Pricing; Collective utility
ISSN:
0272-6106

Full metadata record

DC FieldValue Language
dc.language.isoen_USen_US
dc.titleComparison of Water Pricing Structures from a Collective Utility Viewpointen_US
dc.contributor.authorMetler, Billen_US
dc.contributor.authorDuckstein, Lucienen_US
dc.contributor.departmentSystems Engineering Department, University of Arizona, Tucson, Arizona 85721en_US
dc.date.issued1971-04-23-
dc.rightsCopyright ©, where appropriate, is held by the author.en_US
dc.description.collectioninformationThis article is part of the Hydrology and Water Resources in Arizona and the Southwest collections. Digital access to this material is made possible by the Arizona-Nevada Academy of Science and the University of Arizona Libraries. For more information about items in this collection, contact anashydrology@gmail.com.en_US
dc.publisherArizona-Nevada Academy of Scienceen_US
dc.identifier.journalHydrology and Water Resources in Arizona and the Southwesten_US
dc.description.abstractAs a result of continually lowering water tables in the arid regions of the west, many people are beginning to realize that water should be treated like any other rare resource, letting supply and demand factors regulate its distribution. Three types of price structures are used by water agencies: (1) the flat rate system (2) the step rate system and (3) the block rate system. Each of these structures may be progressive or regressive. At present, Tucson's only source of water lies underground and will presumably decrease as the population increases. To optimize the benefits to the community, it may be necessary to decrease not only average consumption but also summertime peak consumption for swimming pools, evaporative coolers and lawn sprinkling. Currently, Tucson uses a regressive block rate pricing structure. Using the theory of collective utility, a model is developed for use in comparing 2 price structures in an effort to define a monetary value for water conservation. It is concluded that the change in collective utility, du, which is a measure of the worth of change from economic state 1 to 2, is the best measure of price changes in arid areas. The model shows that Tucson water consumption would be lowered and money would be lost with either price structure, but with the permanent change, monetary flow of goods would be greater than under the seasonal structure.en_US
dc.subjectWater resources development -- Arizona.en_US
dc.subjectHydrology -- Arizona.en_US
dc.subjectHydrology -- Southwestern states.en_US
dc.subjectWater resources development -- Southwestern states.en_US
dc.subjectSystems analysisen_US
dc.subjectMunicipal wateren_US
dc.subjectWater conservationen_US
dc.subjectEconomic efficienciesen_US
dc.subjectModel studiesen_US
dc.subjectGroundwateren_US
dc.subjectArizonaen_US
dc.subjectArid landsen_US
dc.subjectEconomic impacten_US
dc.subjectWater demanden_US
dc.subjectWater supplyen_US
dc.subjectWater valuesen_US
dc.subjectMathematical modelsen_US
dc.subjectRegressive taxesen_US
dc.subjectPricingen_US
dc.subjectCollective utilityen_US
dc.identifier.issn0272-6106-
dc.identifier.urihttp://hdl.handle.net/10150/300126-
dc.identifier.journalHydrology and Water Resources in Arizona and the Southwesten_US
dc.typetexten_US
dc.typeProceedingsen_US
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