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An empirical examination of the distributional impacts of water pricing reforms

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  • Renzetti, Steven
  • Dupont, Diane P.
  • Chitsinde, Tina

Abstract

Water pricing reforms may promote conservation and economic efficiency. However, it is possible for water pricing reforms to be regressive. We estimate Stone-Geary and double-log residential water demand functions using data from the Capital Region District of British Columbia, Canada. Two price reforms are simulated: an across-the-board price increase and an increasing block rate structure. The distributional impacts depend on the specification of water demands. For the across-the-board price increase, the double-log model shows no change in the distribution of water expenditures while the Stone-Geary specification indicates a worsening of the inequality of water expenditures.

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  • Renzetti, Steven & Dupont, Diane P. & Chitsinde, Tina, 2015. "An empirical examination of the distributional impacts of water pricing reforms," Utilities Policy, Elsevier, vol. 34(C), pages 63-69.
    • Handle: RePEc:eee:juipol:v:34:y:2015:i:c:p:63-69
    DOI: 10.1016/j.jup.2014.12.004
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    Pricing; Demand; Equity;
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