`When Water Is No Longer Heaven Sent: Comparative Pricing Analysis in an AGE ModelBernard Decaluwe (), A. Patry and Luc Savard () Working Papers from Laval - Recherche en Politique Economique Abstract: In this paper we present a applied general equilibrium model with special features that allows for comparative analysis of different pricing scheme. We look at Boiteux-Ramsey Pricing, Marginal Cost Pricing as well as an arbitrary water pricing increase for the agriculture sectors. A standard AGE was adapted by explicitly modeling water production with its different technologies, water demand by different users also needed to be refined since they are generally modeled with fixed coefficient with no substitution allowed. Results show that the choice of applying one policy over another can rely on the water management authorities (or government)objectives. If considering economic efficiency and water conservation the Boiteux-Ramsey pricing seems to be the best alternative. Moreover, we show that BRP become more clearly advantageous vs MCP the more rigid (small capacities to substitute water for other inputs) the economy's agents Keywords: WATER; TAXES; ECONOMIC MODELS; ECONOMIC EQUILIBRIUM; PRICING (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:fth:lavape:9905 Access Statistics for this paper More papers in Working Papers from Laval - Recherche en Politique Economique |
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