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The pricing of water services in developing countries

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  • Mohan Munasinghe

Abstract

This paper focuses on improving efficiency in the water and sewerage sectors through long‐run marginal cost pricing, adjusted for financial needs, externalities, second best considerations, lifeline tariffs and cross subsidization within an integrated water resource planning (IWRP) framework. Supply efficiency suggests that for a given price structure, an optimal long‐run investment plan and a corresponding level of supply quality should be determined which maximizes net social benefits. Supply efficiency also requires efficient operation of the water system, including optimization of losses.

Suggested Citation

  • Mohan Munasinghe, 1990. "The pricing of water services in developing countries," Natural Resources Forum, Blackwell Publishing, vol. 14(3), pages 193-209, August.
    • Handle: RePEc:wly:natres:v:14:y:1990:i:3:p:193-209
    DOI: 10.1111/j.1477-8947.1990.tb00518.x
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    References listed on IDEAS

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    1. Mohan Munasinghe & Mark Gellerson, 1979. "Economic Criteria for Optimizing Power System Reliability Levels," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 353-365, Spring.
    2. Mohan Munasinghe, 1990. "Water supply policies and issues in developing countries," Natural Resources Forum, Blackwell Publishing, vol. 14(1), pages 33-48, February.
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    Cited by:

    1. Mohan Munasinghe, 1991. "Groundwater resource management and environmental protection," Natural Resources Forum, Blackwell Publishing, vol. 15(4), pages 302-312, November.
    2. Stephen B. Kendie, 1992. "Survey of water use behaviour in rural North Ghana," Natural Resources Forum, Blackwell Publishing, vol. 16(2), pages 126-131, May.

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