@article{Fogarty:264780, recid = {264780}, author = {Fogarty, James and Polyakov, Maksym and Iftekhar, MD Sayed}, title = {Equitable and Efficient systems of water utility charges in the face of a changing water supply mix}, address = {2017-11-09}, number = {1784-2017-5477}, series = {WP1706}, pages = {29}, year = {2017}, abstract = {In this research we argue that for jurisdictions where desalinated water has been introduced as a major supply source such that long run marginal cost is rising, marginal cost pricing is: (i) efficient; (ii) delivers revenue sufficiency; and (iii) is more equitable than traditional pricing approaches. To illustrate our result we compare outcomes under different pricing structures in Western Australia, a jurisdiction where desalinated water is responsible for almost half total potable water supply. We also show that a pure volumetric charge for wastewater services is more equitable than property value based charges or a uniform tariff. The results are based on analysis of water charges for over 700,000 individual households.}, url = {http://ageconsearch.umn.edu/record/264780}, doi = {https://doi.org/10.22004/ag.econ.264780}, }