1986
DOI: 10.1111/j.1752-1688.1986.tb01886.x
|View full text |Cite
|
Sign up to set email alerts
|

THE EFFICIENCY OF WATER PRICING: A RATE OF RETURN ANALYSIS FOR MUNICIPAL WATER DEPARTMENTS1

Abstract: The rate of return on invested capital can be used as a guide to resource allocation by municipal water departments (MWD's) in the same way it is used in the private sector. To achieve economic efficiency, the target rate of return for MWD's should be the market rate of return as an approximation to the opportunity cost of capital. The actual internal rate of return for a sample of 30 California MWD's for the period 1970‐1982 is calculated for this study. The operating internal rate of return varies across the… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

0
2
0
1

Year Published

1994
1994
2024
2024

Publication Types

Select...
5
1

Relationship

0
6

Authors

Journals

citations
Cited by 6 publications
(5 citation statements)
references
References 1 publication
(1 reference statement)
0
2
0
1
Order By: Relevance
“…In this vein, water is not considered a resource, but rather a “right” that deserves public subsidy. For this and other reasons, water agencies (both public and private) have experienced less than full‐cost recovery 13 and low rates of return on capital investments 14 …”
Section: Traditional Pricing Methods a Treadmillmentioning
confidence: 99%
“…In this vein, water is not considered a resource, but rather a “right” that deserves public subsidy. For this and other reasons, water agencies (both public and private) have experienced less than full‐cost recovery 13 and low rates of return on capital investments 14 …”
Section: Traditional Pricing Methods a Treadmillmentioning
confidence: 99%
“…Kijne et al (1991) found that groundwater quality deteriorates towards the tail ends of distributary command areas, affecting crop yields. Mercer and Morgan (1986) discussed the challenges water suppliers face in pricing water to recover costs while maintaining political and administrative feasibility. Improving irrigation systems can alleviate poverty, as evidenced by NDA (1996) in South Africa.…”
Section: Literature Reviewmentioning
confidence: 99%
“…In the late 1980th, with the worsening water crisis, many scholars began to consider using the economic lever in regulating contradictions of water supply and demand, and the price as an important parameter in measuring water resource value. Mercer [1] analyzed the profitability of municipal water sector after the water was priced. Moncur [2,3] (1988, 1987) studied the urban water pricing and drought countermeasure, estimating the relationship of users' water demands, price and income, and instituting a water using restriction project, and he considered that the rise of water marginal price played an obvious role in promoting water saving.…”
Section: Water Resource Valuementioning
confidence: 99%