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Transferable Rate Entitlements: the Overlooked Opportunity in Municipal Water Pricing

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  • Robert A. Collinge

    (University of Texas at San Antonio)

Abstract

Entitlements to marketable water rate options (coupons) have been shown capable of addressing the issue of equity in water pricing, thus allowing efficient marginal cost pricing. This article proposes a "behind the scenes" variation that eliminates learning or transaction costs on the part of the consumer. The article proceeds to explore possibilities to adjust water rates so as to enhance revenues along with efficiency while using the companion instrument of transferable rate entitlements to address equity concerns. This combination opens up possibilities for privatization or deregulation of municipal water utilities.

Suggested Citation

  • Robert A. Collinge, 1994. "Transferable Rate Entitlements: the Overlooked Opportunity in Municipal Water Pricing," Public Finance Review, , vol. 22(1), pages 46-64, January.
    • Handle: RePEc:sae:pubfin:v:22:y:1994:i:1:p:46-64
    DOI: 10.1177/109114219402200103
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    References listed on IDEAS

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    Cited by:

    1. Olmstead, Sheila M. & Stavins, Robert N., 2008. "Comparing Price and Non-price Approaches to Urban Water Conservation," RFF Working Paper Series dp-08-22, Resources for the Future.
    2. Mansur, Erin T. & Olmstead, Sheila M., 2012. "The value of scarce water: Measuring the inefficiency of municipal regulations," Journal of Urban Economics, Elsevier, vol. 71(3), pages 332-346.
    3. Sheila M. Olmstead, 2010. "The Economics of Managing Scarce Water Resources," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 179-198, Summer.
    4. Steven Renzetti, 2009. "Wave of the Future: The Case for Smarter Water," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 281, February.

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