IDEAS home Printed from https://ideas.repec.org/p/eep/report/rr1997111.html
   My bibliography  Save this paper

Pricing for Groundwater Use of Industries in Metro Manila, Philippines

Author

Listed:
  • Maria Corazon Ebarvia

    (School of Economics, University of the Philippines, Diliman)

Abstract

The rapid growth, urbanization and migration in Metro Manila has increased water demand which has outpaced the capacity of the water agency, The Metropolitan Waterworks and Sewerage System (MWSS), to expand supply. Unserved sectors have resorted to well construction while others have resorted to tapping illegal connections to MWSS pipes. Considering that only 65% of the population in the study area is served by the MWSS, and groundwater accounts for only 3% of the MWSS water supply sources, there is a need to focus attention on the private extraction and utilization of groundwater resources in Metro Manila. Average annual groundwater withdrawal for the period 1982-1990 was estimated to be about 235.01 million cubic meters (MCM) while the average annual recharge for the same period was only 206.16 MCM (IDRC-UP-NHRC, 1993). Thus, the rate of mining during this period is 28.84 MCM, resulting in the lowering of the water table by 2.5 meters annually. For the period 1990-96, groundwater level declined at an estimated rate of 6-12m per year. Groundwater resources are, therefore, being threatened by salt water intrusion, contamination, and eventual depletion. This implies that current extraction and utilization of a unit of those resources involve an opportunity cost which is the value that can be gained in the future. Economists would define over-exploitation as any pumping rate in excess of that which yields the maximum present value of net benefits (Young, 1991). This approach would call for the utilization of groundwater stocks if demand so requires, but scale back extraction rates as the aquifer becomes depleted and the "full costs" become higher. The main coverage of the study is the National Capital Region or Metro Manila which consists of eight cities and nine municipalities. The jurisdiction of MWSS includes the National Capital Region (NCR), Rizal province, and parts of Cavite province in Region IV. Its land area is about 2,125-sq. km., with a population of 9.37 million. The NCR and Region IV are the most urbanized and economically developed areas in the country. Aside from being the seat of the National Government, the NCR accounts for 30 percent of the country's Gross Domestic Product.

Suggested Citation

  • Maria Corazon Ebarvia, 1997. "Pricing for Groundwater Use of Industries in Metro Manila, Philippines," EEPSEA Research Report rr1997111, Economy and Environment Program for Southeast Asia (EEPSEA), revised Nov 1997.
    • Handle: RePEc:eep:report:rr1997111
    as

    Download full text from publisher

    File URL: http://www.eepsea.org/pub/rr/10536132990ACF4D.pdf
    File Function: First version, 1997
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Young, Robert A. & Haveman, Robert H., 1985. "Economics of water resources: a survey," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 11, pages 465-529, Elsevier.
    2. R. Bruce Billings & Donald E. Agthe, 1980. "Price Elasticities for Water: A Case of Increasing Block Rates," Land Economics, University of Wisconsin Press, vol. 56(1), pages 73-84.
    3. Jeremy J. Warford, 1994. "Marginal Opportunity Cost Pricing for Municipal Water Supply," EEPSEA Special and Technical Paper sp199401t1, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 1994.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nguyen Van Song & Nguyen Van Hanh, 2016. "Electricity Pricing for North Vietnam," EEPSEA Research Report rr2016058, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.
    2. Nguyen Van Song & Nguyen Van Hanh, 2016. "Electricity Pricing for North Vietnam," EEPSEA Research Report rr2016035, Economy and Environment Program for Southeast Asia (EEPSEA), revised Mar 2016.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olmstead, Sheila M. & Michael Hanemann, W. & Stavins, Robert N., 2007. "Water demand under alternative price structures," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 181-198, September.
    2. Henderson-Sellers, B. & Gallagher, D.R., 1990. "Modelling tools for water management," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 32(1), pages 143-148.
    3. Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
    4. Acuña, Guillermo, 2017. "Elasticidades de la demanda de agua en Chile [Elasticities of water demand in Chile]," MPRA Paper 82916, University Library of Munich, Germany.
    5. Huang, Wen-Yuan & Hyberg, Bengt & Segarra, Eduardo, 1990. "A Variable Price Support Farm Program: A Transition Tool To A Free Market," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(1), pages 1-11, July.
    6. Asci, Serhat & Borisova, Tatiana & Dukes, Michael D., 2015. "Price- and Non-Price Water Demand Management Strategies for Water Utilities," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196768, Southern Agricultural Economics Association.
    7. Tsur, Yacov & Dinar, Ariel, 1996. "On the Relative Efficiency of Alternative Methods for Pricing Irrigation Water and their Implementation," Working Papers 232800, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    8. Bjorner, Thomas Bue & Togeby, Mikael & Jensen, Henrik Holm, 2001. "Industrial companies' demand for electricity: evidence from a micropanel," Energy Economics, Elsevier, vol. 23(5), pages 595-617, September.
    9. Lee, Lung-Fei & Pitt, Mark M., 1984. "Microeconometric Models of Consumer and Producer Demand with Limited Dependent Variables," Bulletins 7495, University of Minnesota, Economic Development Center.
    10. Xiaojia Bao, 2016. "Water, Electricity and Weather Variability in Rural Northern China," Working Papers 2014-07-02, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    11. Lott, Corey & Tchigriaeva, Elena & Rollins, Kimberly & Stoddard, Shawn, 2014. "Residential water demand, climate change and exogenous economic trends," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170660, Agricultural and Applied Economics Association.
    12. Simonis, Udo E., 1990. "Beyond growth: elements of sustainable development," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 112255, June.
    13. Younes Ben Zaied & Mohamed Salah Matoussi, 2011. "Residential Water Demand: A Panel Cointegration Approach and Application to Tunisia," Working Papers 656, Economic Research Forum, revised 12 Jan 2011.
    14. Miguel Bacharach & William J. Vaughan, 1994. "Household Water Demand Estimation," IDB Publications (Working Papers) 25218, Inter-American Development Bank.
    15. Mark Hoffmann & Andrew Worthington & Helen Higgs, 2006. "Urban water demand with fixed volumetric charging in a large municipality: the case of Brisbane, Australia ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 347-359, September.
    16. Corral, Leonardo & Fisher, Anthony C. & Hatch, Nile W., 1999. "Price and Non-Price Influences on Water Conservation: An Econometric Model of Aggregate Demand under Nonlinear Budget Constraint," CUDARE Working Papers 7155, University of California, Berkeley, Department of Agricultural and Resource Economics.
    17. Henrique Monteiro, 2010. "Residential Water Demand in Portugal: checking for efficiency-based justifications for increasing block tariffs," Working Papers Series 1 ercwp0110, ISCTE-IUL, Business Research Unit (BRU-IUL).
    18. Xie, Yang & Zilberman, David, 2018. "Implications of Spatial Externality of Flood Control: Land Reclamation, Wetland Reservation, and Investment in Flood Control Facilities," 2018 Annual Meeting, August 5-7, Washington, D.C. 274445, Agricultural and Applied Economics Association.
    19. Schuck, Eric C. & Proft, Rebecca, 2004. "Evaluating Non-Price Water Demand Policies During Severe Droughts," 2004 Annual meeting, August 1-4, Denver, CO 20177, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Patrick Point, 1993. "Partage de la ressource en eau et demande d'alimentation en eau potable," Revue Économique, Programme National Persée, vol. 44(4), pages 849-862.

    More about this item

    Keywords

    Groundwater; Philippines;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eep:report:rr1997111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arief Anshory yusuf (email available below). General contact details of provider: https://edirc.repec.org/data/eepsesg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.