2020
DOI: 10.1061/(asce)wr.1943-5452.0001228
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How Do Price Surcharges Impact Water Utility Financial Incentives to Pursue Alternative Supplies during Drought?

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Cited by 7 publications
(6 citation statements)
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“…The prices of irrigation water being too cheap [52] and the inexperience of LSIU smallholder farmers in the study area [21] could be the potential reason for the inefficiency of LSIU smallholder farmers as compared to the SSIU and NU farmers. Introducing appropriate irrigation water prices could increase the economic efficiency of LSIU smallholder farmers while also mitigating some lost revenue [52,53]. Therefore, by introducing appropriate irrigation water prices and adopting best practices of efficient smallholder farmers and/or operating at optimal scales, the output of LSIU, SSIU and NU farmers could be increased, on average, by 79%, 40% and 53.5%, respectively.…”
Section: Econometric Results Of the Technical (In) Efficiency Modelmentioning
confidence: 99%
“…The prices of irrigation water being too cheap [52] and the inexperience of LSIU smallholder farmers in the study area [21] could be the potential reason for the inefficiency of LSIU smallholder farmers as compared to the SSIU and NU farmers. Introducing appropriate irrigation water prices could increase the economic efficiency of LSIU smallholder farmers while also mitigating some lost revenue [52,53]. Therefore, by introducing appropriate irrigation water prices and adopting best practices of efficient smallholder farmers and/or operating at optimal scales, the output of LSIU, SSIU and NU farmers could be increased, on average, by 79%, 40% and 53.5%, respectively.…”
Section: Econometric Results Of the Technical (In) Efficiency Modelmentioning
confidence: 99%
“…Given the important role of water and its scarcity, researchers focus on water conservation strategies, so as to optimize water supply portfolios (Fraga et al 2017 ). Well-known strategies such as financial incentives and political mandates fail to encourage water conservation in water-consumption scenarios (Zeff et al 2020 ). Therefore, researchers aim to provide solutions for water management from the supply-side and demand-side.…”
Section: Resultsmentioning
confidence: 99%
“…For example, drought response water restrictions during the summer of 2013 decreased Denver Water's operating revenue by 13% ($37 million) relative to original fiscal year projections (Denver Water, 2016). Reduced revenue during droughts affects a utility's ability to recover its mostly fixed costs, potentially leading to lower credit ratings and higher bond financing rates (H. Zeff et al, 2020). In turn, this increases the cost of capital required for routine maintenance and infrastructure improvements (Dilling et al, 2019).…”
Section: Sector‐specific Drought Impactsmentioning
confidence: 99%