The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment

The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment
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加拿大自给水定价的福利影响:可计算的一般均衡评估

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发表时间:
2013
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影响因子:
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通讯作者:
Steven Groves
Steven Groves
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文献类型:
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作者:
N. Rivers;Steven Groves

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本文使用一个可计算的一般均衡模型来评估将加拿大的水分配方法改为使用价格来分配需求的福利成本。我们对抽取的水和消耗的水(抽取后不返回水源)的价格进行了建模。我们估计减少25%的水消耗% would require imposition of a price on water consumption of around $$\$0.21/\text{ m }^{3}$$. Similarly, introduction of a water abstraction charge of about $$\$0.013/\text{ m }^{3}$$ would be sufficient to reduce water abstraction by 25 %. We find that if revenues from water pricing are returned in lump sum to households, the introduction of water pricing would result in a modest welfare loss. When revenues from water pricing are used to offset existing taxes, we find a gain in welfare corresponding to a ‘strong double dividend.’
This paper uses a computable general equilibrium model to assess the welfare cost of changing the method of water allocation in Canada towards one that uses prices to ration demand. We model the introduction of a price on both water that is abstracted as well as water that is consumed (that is abstracted, and not returned to the source). We estimate that reducing water consumption by 25 % would require imposition of a price on water consumption of around $$\$0.21/\text{ m }^{3}$$. Similarly, introduction of a water abstraction charge of about $$\$0.013/\text{ m }^{3}$$ would be sufficient to reduce water abstraction by 25 %. We find that if revenues from water pricing are returned in lump sum to households, the introduction of water pricing would result in a modest welfare loss. When revenues from water pricing are used to offset existing taxes, we find a gain in welfare corresponding to a ‘strong double dividend.’