IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v18y2010i3p129-134.html
   My bibliography  Save this article

Water scarcity: Can virtual water operators help?

Author

Listed:
  • Dominguez, Fernando

Abstract

The changing climate is likely to have an effect on water and sewerage sectors. To deal with this challenge regulators need consider ways to better signal the value of water, that is, such that water is more expensive where it is scarce. This paper shows that virtual water operators (VWO) could result in entrants internalising this value and provide regulators with an estimate of it. With water scarcity, entrants will face higher cost of entry as they will need to acquire expensive, if available, abstraction licences. Given these higher prices they will also be willing to pay higher prices to become a VWO in those areas with scarcity. This means that VWOs can help to reveal the real value of water. Further, by introducing these considerations into part of the incumbent's capacity, VWO also help to introduce this cost into the supply of the incumbent.

Suggested Citation

  • Dominguez, Fernando, 2010. "Water scarcity: Can virtual water operators help?," Utilities Policy, Elsevier, vol. 18(3), pages 129-134, September.
  • Handle: RePEc:eee:juipol:v:18:y:2010:i:3:p:129-134
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957-1787(10)00015-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Crandall Robert W. & Ingraham Allan T & Singer Hal J, 2004. "Do Unbundling Policies Discourage CLEC Facilities-Based Investment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-25, June.
    2. Duarte Brito & Pedro Pereira, 2010. "Access to Bottleneck Inputs under Oligopoly: A Prisoners’ Dilemma?," Southern Economic Journal, John Wiley & Sons, vol. 76(3), pages 660-677, January.
    3. Maroeska G. Boots, Fieke A.M. Rijkers and Benjamin F. Hobbs, 2004. "Trading in the Downstream European Gas Market: A Successive Oligopoly Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 73-102.
    4. Bourreau, Marc & Dogan, Pinar, 2004. "Service-based vs. facility-based competition in local access networks," Information Economics and Policy, Elsevier, vol. 16(2), pages 287-306, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saida Elfkih & Olfa Hadiji & Saker Ben Abdallah & Olfa Boussadia, 2023. "Water Accounting for Food Security: Virtual Water and Water Productivity in the Case of Tunisian Olive Oil Value Chain," Agriculture, MDPI, vol. 13(6), pages 1-16, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hrovatin, Nevenka & Švigelj, Matej, 2013. "The interplay of regulation and other drivers of NGN deployment: A real-world perspective," Telecommunications Policy, Elsevier, vol. 37(10), pages 836-848.
    2. Dogan, Pinar & Bourreau, Marc & Manant, Matthieu, 2010. "A Critical Review of the “Ladder of Investment†Approach," Scholarly Articles 4777447, Harvard Kennedy School of Government.
    3. Marc Bourreau & Pinar Dogan, 2006. ""Build-or-Buy" Strategies in the Local Loop," American Economic Review, American Economic Association, vol. 96(2), pages 72-76, May.
    4. Franziska Holz & Christian von Hirschhausen & Claudia Kemfert, 2009. "Perspectives of the European Natural Gas Markets Until 2025," The Energy Journal, , vol. 30(1_suppl), pages 137-150, June.
    5. Hahn, Robert & Evans, Lewis, 2010. "Regulating Dynamic Markets: Progress in Theory and Practice," Working Paper Series 4052, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    6. Nicholas Economides & Katja Seim & V. Brian Viard, 2008. "Quantifying the benefits of entry into local phone service," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 699-730, September.
    7. Egging, Ruud & Pichler, Alois & Kalvø, Øyvind Iversen & Walle–Hansen, Thomas Meyer, 2017. "Risk aversion in imperfect natural gas markets," European Journal of Operational Research, Elsevier, vol. 259(1), pages 367-383.
    8. Koning, Kendall J. & Yankelevich, Aleksandr, 2018. "From internet “Openness” to “Freedom”: How far has the net neutrality pendulum swung?," Utilities Policy, Elsevier, vol. 54(C), pages 37-45.
    9. Csercsik, Dávid & Hubert, Franz & Sziklai, Balázs R. & Kóczy, László Á., 2019. "Modeling transfer profits as externalities in a cooperative game-theoretic model of natural gas networks," Energy Economics, Elsevier, vol. 80(C), pages 355-365.
    10. Egging, Rudolf G. & Gabriel, Steven A., 2006. "Examining market power in the European natural gas market," Energy Policy, Elsevier, vol. 34(17), pages 2762-2778, November.
    11. Mel Devine & James Gleeson & John Kinsella & David Ramsey, 2014. "A Rolling Optimisation Model of the UK Natural Gas Market," Networks and Spatial Economics, Springer, vol. 14(2), pages 209-244, June.
    12. Steven A. Gabriel & Supat Kiet & Jifang Zhuang, 2005. "A Mixed Complementarity-Based Equilibrium Model of Natural Gas Markets," Operations Research, INFORMS, vol. 53(5), pages 799-818, October.
    13. Gijsbert T.J. Zwart, 2009. "European Natural Gas Markets: Resource Constraints and Market Power," The Energy Journal, , vol. 30(1_suppl), pages 151-166, June.
    14. Junhui Li, 2020. "Transaction Cost and the Theory of Games: The “Prisoners’ Dilemma” as an Example," Man and the Economy, De Gruyter, vol. 7(1), pages 1-16, June.
    15. Sangwon Lee & Seonmi Lee & Hyemin Joo & Yoonjae Nam, 2021. "Examining Factors Influencing Early Paid Over-The-Top Video Streaming Market Growth: A Cross-Country Empirical Study," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    16. Lewis Evans, 2004. "The efficiency test under competition law and regulation in the small distant open economy that is New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(2), pages 241-264.
    17. Maya Bacache & Marc Bourreau & Germain Gaudin, 2014. "Dynamic Entry and Investment in New Infrastructures: Empirical Evidence from the Fixed Broadband Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(2), pages 179-209, March.
    18. Arnold, Lutz G. & Arnold, Volker, 2024. "Energy imports and manufacturing exports with successive oligopolies and storage," Energy Economics, Elsevier, vol. 133(C).
    19. Hubert, Franz & Orlova, Ekaterina, 2018. "Network access and market power," Energy Economics, Elsevier, vol. 76(C), pages 170-185.
    20. Bakaouka, Elpiniki & Milliou, Chrysovalantou, 2018. "Vertical licensing, input pricing, and entry," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 66-96.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:18:y:2010:i:3:p:129-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.