An Assessment of the Impact of Charging for Provincial Water Use Permits

Steven Renzetti and Diane Dupont

Canadian Public Policy, 1999, vol. 25, issue 3, 361-378

Abstract: Population and income growth and global warming have contributed to a growing concern regarding the availability of potable water supplies in Canada. While a number of provinces have already introduced fees for the permits required for direct water withdrawals, others give these permits away gratis. The paper assesses the likely impacts of introducing a charge for water permits upon the water use and production costs of the major water-using sectors in Ontario. These impacts are quantified by using a numerical analysis based upon econometric models of water use. The analysis indicates that by charging for water withdrawal permits the government can encourage water conservation and bring in new revenues, while doing relatively little to raise the industry's costs.

Date: 1999
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Citations: View citations in EconPapers (6)

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