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Innovative water rates as a policy tool for drought response: Two case studies from Utah, USA

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  • Sowby, Robert B.
  • South, Andrew J.

Abstract

Drought in the Western U.S. has elevated the need for innovative water pricing. We describe two utilities whose novel pricing structures reflect water availability and reasonable use expectations. One has a physical basis of water rights, landscape water needs, and irrigated area; the other has a hydrologic basis of an annual water supply forecast. Both utilities charge users tiered (increasing block) rates for an adjustable water allotment. The rates have proved hydrologically beneficial, socially equitable, and financially sustainable during the drought, suggesting that water pricing can be an effective policy tool for responsive water management.

Suggested Citation

  • Sowby, Robert B. & South, Andrew J., 2023. "Innovative water rates as a policy tool for drought response: Two case studies from Utah, USA," Utilities Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000826
    DOI: 10.1016/j.jup.2023.101570
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    References listed on IDEAS

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