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Workshop 6 (synthesis): water pricing.

M Rouse1, U B Fallenius, C Tortajada

  • 1Drinking Water Inspectorate, 2/D1 Ashdown House, 123 Victoria Street, London SWIE 6DE, UK. michael.rouse@defra.gsi.gov.uk

Water Science and Technology : a Journal of the International Association on Water Pollution Research
|May 7, 2003
PubMed
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Water pricing should reflect its value, with transparent fees for cost recovery, considering social, economic, and environmental impacts. Targeted subsidies are essential for the poor, and pollution fees can reduce discharges.

Area of Science:

  • Environmental Economics
  • Water Resource Management
  • Public Policy

Background:

  • Water is a finite resource requiring economic valuation.
  • Current water pricing often fails to cover costs or account for externalities.
  • Social equity necessitates targeted support for vulnerable populations.

Purpose of the Study:

  • To advocate for a comprehensive water costing and pricing framework.
  • To explore mechanisms for adequate cost recovery and transparent fee structures.
  • To highlight the role of subsidies and pollution fees in sustainable water management.

Main Methods:

  • Economic analysis of water valuation.
  • Policy review of water pricing strategies.
  • Assessment of social and environmental impacts.

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Main Results:

  • Transparent water fees can achieve adequate cost recovery.
  • Consideration of social, economic, and environmental effects is crucial for effective pricing.
  • Targeted subsidies are vital for water access among the poor.
  • Point source pollution fees effectively reduce pollutant discharges.

Conclusions:

  • Implementing value-based water costing and transparent fees is essential for sustainability.
  • Water pricing policies must integrate social equity and environmental protection.
  • Pollution fees offer a viable tool for mitigating water contamination.