Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 359389
Title Welfare and distribution effects of water pricing policies
Author(s) Ruijs, A.J.W.
Source Milano : Fondazione Eni Enrico Mattei (Working Papers / Fondazione Eni Enrico Mattei paper 151) - 22
Department(s) Environmental Economics and Natural Resources Group
Publication type Scientific report
Publication year 2007
Keyword(s) prijsbeleid - prijzen - drinkwater - water - waterbeschikbaarheid - watertarieven - inkomensverdeling - bevolkingsgroepen met een laag inkomen - welvaartseconomie - economische analyse - sao paulo - brazilië - prijsbepalende factoren - price policy - prices - drinking water - water availability - water costs - income distribution - low income groups - welfare economics - economic analysis - brazil - price determining factors
Categories Natural Resource Economics
Abstract In this paper, distribution and welfare effects of changes in block price systems are evaluated. A method is discussed to determine, for a Marshallian demand function, equivalent variation in case of a block price system. The method is applied to analyze welfare and distribution effects of changing water prices in the Metropolitan Region of Sao Paulo. Results show that there is a trade off between average welfare and income distribution. A pro-poor price system may result in lower average welfare than a flat price system, but in higher individual welfare for the poor. Moreover, there is a trade off between revenues for the water company and income distribution. Even though pro-poor price systems may not be as good for average welfare as flat price systems, their direct effects on poverty are important. Introducing pro-poor price systems, however, may have financial consequences for the water companies.
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