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Nonlinear Pricing and Capacity Planning for Water and Wastewater Services

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  • J. Elnaboulsi

Abstract

The purpose of this article is to determine the optimal nonlinear pricingrules for water services. The model presents a standard water distributionsystem and a separate wastewater collection and treatment system. Technicaland financial constraints are considered. The optimization process of awelfare utility function subject to different kind of constraints providesthe optimal pricing rules for drinking water and sewerage services. Theseprices reflect efficiently the costs of systems constraints, the cyclicityof demands, the time-of-use, heterogeneity types of consumers and the realvalue of water resources scarcity. They provide important guidance in thedesign of efficient water rates and in the development of different waterutilities planning strategies. New technologies in water metering(telemetry) should permit applying this model. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • J. Elnaboulsi, 2001. "Nonlinear Pricing and Capacity Planning for Water and Wastewater Services," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 15(1), pages 55-69, February.
    • Handle: RePEc:spr:waterr:v:15:y:2001:i:1:p:55-69
    DOI: 10.1023/A:1012228611303
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    Cited by:

    1. Hugh Sibly & Richard Tooth, 2014. "The consequences of using increasing block tariffs to price urban water," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), pages 223-243, April.
    2. Buttinelli, Rebecca & Cortignani, Raffaele & Caracciolo, Francesco, 2024. "Irrigation water economic value and productivity: An econometric estimation for maize grain production in Italy," Agricultural Water Management, Elsevier, vol. 295(C).
    3. Xiuli Liu & Xikang Chen & Shouyang Wang, 2009. "Evaluating and Predicting Shadow Prices of Water Resources in China and Its Nine Major River Basins," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(8), pages 1467-1478, June.
    4. R. Amit & Parthasarathy Ramachandran, 2010. "A Fair Contract for Managing Water Scarcity," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(6), pages 1195-1209, April.
    5. Rita Martins & Carlota Quintal & Eduardo Barata & Luís Cruz, 2010. "Water Pricing and Social Equity in Portuguese Municipalities," GEMF Working Papers 2010-17, GEMF, Faculty of Economics, University of Coimbra.
    6. Rita Martins & Luis Cruz & Eduardo Barata, 2013. "Water Price Regulation: A Review of Portuguese Tariff Recommendations," Public Organization Review, Springer, vol. 13(2), pages 197-205, June.
    7. Ming-Feng Hung & Bin-Tzong Chie, 2013. "Residential Water Use: Efficiency, Affordability, and Price Elasticity," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 275-291, January.
    8. Andrés Chambouleyron, 2002. "An Incentive Mechanism for Decentralized Water Metering Decisions," Industrial Organization 0206001, University Library of Munich, Germany, revised 01 Nov 2002.
    9. Andrés Chambouleyron, 2003. "An Incentive Mechanism for Decentralized Water Metering Decisions," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 17(2), pages 89-111, April.
    10. Henrique Monteiro, 2005. "Water Pricing Models: a survey," Others 0510002, University Library of Munich, Germany.
    11. Roseta-Palma, Catarina & Monteiro, Henrique, 2008. "Pricing for Scarcity," MPRA Paper 10384, University Library of Munich, Germany.
    12. Fuente, David, 2019. "The design and evaluation of water tariffs: A systematic review," Utilities Policy, Elsevier, vol. 61(C).
    13. Francisco González-Gómez & Miguel García‐Rubio & Francisco Alcalá-Olid & M. Ortega-Díaz, 2013. "Outsourcing and Efficiency in the Management of Rural Water Services," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(3), pages 731-747, February.
    14. Ramón Barberán & Fernando Arbués, 2009. "Equity in Domestic Water Rates Design," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(10), pages 2101-2118, August.
    15. Murat Kilic & Suer Anac, 2010. "Multi-Objective Planning Model for Large Scale Irrigation Systems: Method and Application," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(12), pages 3173-3194, September.

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