Innovative water rates as a policy tool for drought response: Two case studies from Utah, USA

Robert B. Sowby and Andrew J. South

Utilities Policy, 2023, vol. 82, issue C

Abstract: Drought in the Western U.S. has elevated the need for innovative water pricing. We describe two utilities whose novel pricing structures reflect water availability and reasonable use expectations. One has a physical basis of water rights, landscape water needs, and irrigated area; the other has a hydrologic basis of an annual water supply forecast. Both utilities charge users tiered (increasing block) rates for an adjustable water allotment. The rates have proved hydrologically beneficial, socially equitable, and financially sustainable during the drought, suggesting that water pricing can be an effective policy tool for responsive water management.

Keywords: Water tariffs; Water utility; Water conservation (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0957178723000826
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000826

DOI: 10.1016/j.jup.2023.101570

Access Statistics for this article

Utilities Policy is currently edited by Beecher, Janice

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().