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
复制标题
加拿大自给水定价的福利影响:可计算的一般均衡评估
DOI:
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发表时间:
2013
期刊:
影响因子:
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通讯作者:
Steven Groves
中科院分区:
文献类型:
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作者:
N. Rivers;Steven Groves
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.’