THE POLITICAL INFLUENCE OF RESIDENTIAL CONSUMERS ON WATER RATES1

ABSTRACT: The regulatory process such as that for water rates can be viewed as a bargaining process between regulators, utility management, and consumers. This bargaining process involves both political and economic influences. In an attempt to empirically verify that utility rates are a product of both economic and political factors, a sample of publicly-owned water utilities was subjected to regression analysis. As expected, cost and cost-related factors were positive and significant determinants of residential water rates. Using an admittedly imperfect measure of residential user political influence, there was evidence that increased political activity results in lower water rates. Furthermore, the political influence and water rate linkage is more evident in small water utilities than in larger suppliers.     

环境产权拍卖机制及定价研究

在解析环境产权属性的基础上,探讨了环境产权市场交易的基础和条件,设计了一种具有可分性的环境产权拍卖机制,并研究了在这种拍卖机制下,竞标者实现自身效益最大化条件下的环境产权价格确定机制。最后讨论了这种拍卖及定价机制下政府环境管理目标的实现以及对解决环境效益外部性的作用。     

Attitudes to conservation and water consumption

Sydney's water supply is under great pressure as the demand continues to rise. Demand mitigation strategies have had some success, but domestic consumption remains high. This paper discusses the attitudes of households to their water consumption in a search for ways in which domestic demand for water may be reduced. Evidence on attitudes of households in different kinds of housing was obtained using a telephone interview survey supplemented by information derived from focus groups drawn from households in the same areas. The information was collected in a period when strong water use restrictions were in place and major arguments were being mounted in favour of water pricing as a way of moderating demand. The paper argues that the complexity of the forces shaping demand needs to be understood in the context of the socio-demographic composition of households in different kinds of dwellings, as well as the cultural, behavioural and institutional aspects of consumption, if public policy is to be successful in reducing consumption and/or providing alternative domestic supplies of potable water.     

Research On The Value Theory Of Natural Resources And Pricing Methods

Abstract

This paper analyses the historical reasons that have resulted in the assumption that natural resources have no valuve. As opposed to this assumption, a conception of resource industry is proposed. The paper expounds the basis of the value of resources and explains the significance of the research of resource value theory. It also attempts to determine the relevant factors, methods and formal expressions of pricing resources.     

Cost analysis in laccase production

In this paper the cost of producing the enzyme laccase by the white-rot fungus Trametes pubescens under both submerged (SmF) and solid-state fermentation (SSF) conditions was studied. The fungus was cultured using more than 45 culture medium compositions. The cost of production was estimated by analyzing the cost of the culture medium, the cost of equipment and the operating costs. The cost of the culture medium represented, in all cases, the highest contribution to the total cost, while, the cost of equipment was significantly low, representing less than 2% of the total costs. The cultivation under SSF conditions presented a final cost 50-fold lower than the one obtained when culturing under SmF conditions at flask scale. In addition, the laccase production under SSF conditions in tray bioreactors reduced the final cost 4-fold compared to the one obtained under SSF conditions at flask scale, obtaining a final price of 0.04 cent €/U.     

Pricing behaviour and market power in North American non-ferrous metal industries

The paper considers the degree to which declining market power explains modifications in pricing behaviour observed since the late 1970s in the North American aluminium, copper, lead and zinc industries. More precisely, it relates those changes in pricing policies to the price elasticity of demand facing the dominant strategic group in each industry, the cost elasticity of supply and to the management's ability to coordinate or internalize conduct decisions. The results suggest that the firms in the copper and lead industries do not hold as a group any form of market power. In the case of the aluminum industry, a notable increase in the price elasticity of demand since the end of the 1970s, a sustained decrease in the concentration ratio and a rigid production process are weakening the presence of market power in that industry. The results are inconclusive in the case of the zinc industry since the determinants of market power move in opposite directions.     

Irrigation water management policies: Allocation and pricing principles and implementation experience

Food security and sustainable development require efficient use of water resources, especially in irrigation. Economic pricing can be an effective tool to achieve more efficient water use, provided it is supported by other policies in implementation. Applying various water pricing and cost recovery arrangements is suggested for efficient allocation. Any adverse impact on farmers’ incomes must be addressed and more reliable service must accompany higher prices. Experience from several countries suggests a variety of implementation issues. Essential complements to water pricing are water distribution rules and technological choices at critical nodes in the delivery system that allow farmers flexibility in conserving water in response to higher prices. Among supporting institutions, water users associations seem a higher priority than water markets.     

Mountain substitutability and peak load pricing of high alpine peaks as a management tool to reduce environmental damage: A contingent valuation study

High alpine peaks throughout the world are under increasing environmental pressure from hikers, trekkers, and climbers. Colorado's “Fourteeners”, peaks with summits above 14,000 feet are no exception. Most of these peaks have no entrance fees, and reach ecological and social carrying capacity on weekends. This paper illustrates how a series of dichotomous choice contingent valuation questions can be used to evaluate substitutability between different alpine peaks and quantify the price responsiveness to an entrance fee. Using this approach, we find that peak load pricing would decrease use of popular Fourteeners in Colorado by 22%. This reduction is due almost entirely to substitution, rather than income effects. There is also price inelastic demand, as 60% of the hikers find no substitution for their specific Fourteener at the varying cost increases posed in the survey. The no substitute group has a mean net benefit of $294 per hiker, per trip, considerably higher than visitor net benefits in most recreational use studies.     

Watershed-based point sources permitting strategy and dynamic permit-trading analysis

Permit-trading policy in a total maximum daily load (TMDL) program may provide an additional avenue to produce environmental benefit, which closely approximates what would be achieved through a command and control approach, with relatively lower costs. One of the important considerations that might affect the effective trading mechanism is to determine the dynamic transaction prices and trading ratios in response to seasonal changes of assimilative capacity in the river. Advanced studies associated with multi-temporal spatially varied trading ratios among point sources to manage water pollution hold considerable potential for industries and policy makers alike. This paper aims to present an integrated simulation and optimization analysis for generating spatially varied trading ratios and evaluating seasonal transaction prices accordingly. It is designed to configure a permit-trading structure basin-wide and provide decision makers with a wealth of cost-effective, technology-oriented, risk-informed, and community-based management strategies. The case study, seamlessly integrating a QUAL2E simulation model with an optimal waste load allocation (WLA) scheme in a designated TMDL study area, helps understand the complexity of varying environmental resources values over space and time. The pollutants of concern in this region, which are eligible for trading, mainly include both biochemical oxygen demand (BOD) and ammonia-nitrogen (NH3-N). The problem solution, as a consequence, suggests an array of waste load reduction targets in a well-defined WLA scheme and exhibits a dynamic permit-trading framework among different sub-watersheds in the study area. Research findings gained in this paper may extend to any transferable dynamic-discharge permit (TDDP) program worldwide.     

Water resource pricing: Policy options

This paper critically examines pricing policy options for water resources and attempts to derive an operationally feasible and socially desirable pricing structure for this important resource. Marginal cost pricing options are studied under different economic and resource conditions, such as inflation, constrained water resources and price distortions in an economy. Options such as pricing of water at its ‘real’ resource value, ‘social’ pricing, and pricing to reflect intangible benefits are also examined.