TY - JOUR
T1 - The paradox of water pricing: dichotomies, dilemmas, and decisions
AU - Grafton, Quentin
AU - Chu, Long
AU - Wyrwoll, Paul
PY - 2020
Y1 - 2020
N2 - We deliver a public policy perspective on the dichotomies, dilemmas, and decisions of water
pricing. First, the dichotomies between price and value, and costs, are defined to explain the paradox
of water pricing: the price of water almost never equals its value and rarely covers its cost. Second, the
dilemmas of water pricing are highlighted across efficiency and equity, objectives for water pricing, and
the instruments available to decision-makers. Third, the challenges of decision-making are evaluated
and illustrated in relation to water pricing. Fourth, an adaptive process is provided that includes participatory assessment of risks and options to guide water-pricing decision-making.
Keywords: water tariff, costs, equity, efficiency, regulation
AB - We deliver a public policy perspective on the dichotomies, dilemmas, and decisions of water
pricing. First, the dichotomies between price and value, and costs, are defined to explain the paradox
of water pricing: the price of water almost never equals its value and rarely covers its cost. Second, the
dilemmas of water pricing are highlighted across efficiency and equity, objectives for water pricing, and
the instruments available to decision-makers. Third, the challenges of decision-making are evaluated
and illustrated in relation to water pricing. Fourth, an adaptive process is provided that includes participatory assessment of risks and options to guide water-pricing decision-making.
Keywords: water tariff, costs, equity, efficiency, regulation
U2 - 10.1093/oxrep/grz030
DO - 10.1093/oxrep/grz030
M3 - Article
VL - 36
SP - 86
EP - 107
JO - Oxford Review of Economic Policy
JF - Oxford Review of Economic Policy
SN - 0266-903X
IS - 1
ER -