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Water-Saving Technology and Efficient Tariffs

Author

Listed:
  • Friedman, A.

    (State University Higher School of Economics, Moscow, Russia)

Abstract

Dynamic model of efficient allocation of water with three sources of water supply (groundwater, surface water and the recycling technology with limited capacity) is constructed and analyzed. It is shown that in case of binding capacity constraint we can abandon the use of groundwater at some moment and then revert to it some time in future. Efficient path could be decentralized under suitable water tariffs. Comparative analyses of water tariffs for the two users that differ only in terms of the availability of recycling technology are undertaken.

Suggested Citation

  • Friedman, A., 2010. "Water-Saving Technology and Efficient Tariffs," Journal of the New Economic Association, New Economic Association, issue 8, pages 35-53.
    • Handle: RePEc:nea:journl:y:2010:i:8:p:35-53
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    References listed on IDEAS

    as
    1. M. Hoel, 1977. "Resource Extraction and Recycling With Environmental Costs," Working papers 197, Massachusetts Institute of Technology (MIT), Department of Economics.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    exhaustible resources; water recycling; decentralization;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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