Municipal water supply and sewage treatment: costs, prices, and distortions.

Municipal water supply and sewage treatment utilities in Ontario, Canada, are studied in order to establish their costs of supply and evaluate their pricing practices. Prices charged to residential and commercial customers are found to be only one-third and one-sixth of the estimated marginal cost...

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Bibliographic Details
Published in:Canadian Journal of Economics Vol. 32; no. 3; pp. 688 - 705
Main Author: Renzetti, Steven
Format: Article
Published: Wiley-Blackwell May 1999
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Municipal water supply and sewage treatment: costs, prices, and distortions.
      aug:
        au: Renzetti, Steven
      su:
        Waste management -- Fees
        Water utility rates
        Water utilities
        Sewage disposal plant costs
        Marginal pricing
        Ontario
      sug:
        subj:
          Ontario
          Waste management -- Fees
          Water utility rates
          Water utilities
          Sewage disposal plant costs
          Marginal pricing
      keyword: Marginal cost pricing
      ab: Municipal water supply and sewage treatment utilities in Ontario, Canada, are studied in order to establish their costs of supply and evaluate their pricing practices. Prices charged to residential and commercial customers are found to be only one-third and one-sixth of the estimated marginal cost for water supply and sewage treatment, respectively. For example, the average price to residential customers is $0.32/m3, while the estimated marginal cost is $0.87/m3. The estimated cost parameters are combined with estimated residential and non-residential demands functions in order to calculate approximate welfare losses that arise from overconsumption. Reprinted by permission of the publisher.
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      doctype: Article
      src: R
    language: English
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