Skip to main content
SpringerLink
Log in

Urban Water Pricing and Drought Management: A Risk Based Approach

  • Conference paper
Drought Management Planning in Water Supply Systems

Part of the book series: Water Science and Technology Library ((WSTL,volume 32))

  • 348 Accesses

Abstract

This paper presents a new methodology for urban water pricing during drought condition that expresses urban water pricing as a function of risk. Risk is given as the probability that urban water demand exceeds available water supply. Urban water demand is believed to be elastic to price. However, uncertainty is involved in the estimation of the expected demand and the available supply. Both the demand and the supply, which are also related to the return period of hydrologic conditions, can be represented by probability distribution functions about the expected values. The general trend is that the gap between the available supply and the expected demand diverges as the return period increases. Relationships between urban water price, the return period of hydrologic conditions and the associated risk are developed. Also under sustained drought conditions where the demand exceeds the available supply, a methodology is developed whereby the demand can be adjusted down to the available supply through successive increases in the water price.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Agthe, Donald E. and Billings, R. Bruce (1980) Dynamic Models of Residential Water Demand, Water Resources Research 3, 476–480.

    Article  Google Scholar 

  • Anderson, Jock R and Dillon, John L. (1992) Risk Analysis in Dryland Fanning Systems, FAO, Rome: Italy. Billings, R. Bruce and Agthe, Donald E. (1980) Price Elasticities for Water: A Case of Increasing Block Rates, Land Economics, Vol. 56, 1, 73–84.

    Google Scholar 

  • Bruins, Hendrick (1993) Drought Risk and Water Management in Israel: Planning for the Future, in Donald A. Wilhite (ed). Drought Assessment, Management and Planning: Theory and Case Studies, Kluwer Academic Publishers, Boston.

    Google Scholar 

  • Changnon, Stanley (1993) Are We Doomed to Fail in Drought Management?, in Martin Ruess (ed). Water Resources Administraiton in the United States: Policy, Practice, and Emerging Issues, Michigan State University Press, East Lansing: Michigan, 194–202.

    Google Scholar 

  • Chow, Ven Te, Maidment, David R., and Mays, Larry W. (1988) Applied Hydrology, McGraw Hill, Inc., New York.

    Google Scholar 

  • Carver, Philip H, and Boland, John J. (1980) Short-and Long-Run Effects of Price on Municipal Water Use, Water Resources Research, Vol. 16, 4; 609–616.

    Google Scholar 

  • Dixon, Lloyd S., et al. (1996) Drought Management Policies and Economic Effects in Urban Areas of California, 1987–1992,RAND.

    Google Scholar 

  • Dziegielewski, Benedykt, et al. (1986) Drought Management Option, Drought Management and Its Impact on Public Water System, Report on a Colloquium Sponsored by the Water Science and Technology Board, Sept. 5, 1985, National Academy Press, Washington, D. C.;

    Google Scholar 

  • Dziegielewski, Benedykt, et al. (1991) National Study of Water Management During Drought: A Research Assessment for the US Army Corps of Engineers Water Resources Support Center,Institute for Water Resources, IWR Report 91-NDS-3.

    Google Scholar 

  • Easterling, William E. (1993), Assessing the Regional Consequences of Drought: Putting the MINK Methodology to Work on Today’s Problems, Donald A. Wilhite (ed). in Drought Assessment, Management and Planning: Theory and Case Studies, Kluwer Academic Publishers, Boston.

    Google Scholar 

  • Garen, David C. (1993), Revised Surface-Water Supply Index for Western United States, Journal of Water Resources Planning and Management, ASCE, Vol. 119, 4, 437–454

    Google Scholar 

  • Gibbs, Kenneth (1978) Price Variables in Residential Water Demand Models, Water Resources Research, Vol. /4, 1, 15–18.

    Google Scholar 

  • Grebenstein, Charles R. and Field, Barry C. (1979) Substituting for Water Inputs in U.S. Manufacturing, Water Resources Research, Vol. 15, 2, 228–232.

    Google Scholar 

  • Griffin, Ronald C., and Stoll, John (1983) The Enhanced Role of Water Conservation in the Cost-Benefit Analysis of Water Projects, Water Resources Bulletin, American Water Resources Association, Vol. 19, 3, 447–457

    Google Scholar 

  • Hanke, Steve H.; 1970; Demand for Water under Dynamic Conditions, Water Resources Research, Vol. 6, 5, 1253–1261.

    Google Scholar 

  • Hanke, Steve H. and de Maré, Lennart (1982) Residential Water Demand: A Pooled, Time Series, Cross Section Study of Malmö, Sweden, Water Resources Bulletin, American Water Resources Association, Vol. 18, 4, 621–625.

    Google Scholar 

  • Hobbs, Benjamin F., (1989) An Overview of Integrated Water Supply System Availability, in Larry W. Mays (ed)., Reliability Analysis of Water Distribution Systems, ASCE, New York.

    Google Scholar 

  • Howe, Charles W. (1993) Water Pricing: An Overview, Water Resources Update, The Universities Council in Water Resources, 92, 3–6.

    Google Scholar 

  • Howe, Charles W. (1982) The Impact of Price on Residential Water Demand: Some New Insights, Water Resources Research, Vol. 18, 4, 713–716.

    Google Scholar 

  • Howe, Charles W., and Linaweaver, F. P.(Jr) (1967) The Impact of Price on Residential Water Demand and Its Relation to System Design and Price Structure, Water Resources Research, Vol. 3, 1, 13–32.

    Google Scholar 

  • Hudson, H.E. (Jr). and Hazen, Richard (1964), Drought and Low Stream Flows, in Ven Te Chow (ed)., Handbook ofApplied Hydrology, McGraw Hill, Inc., New York.

    Google Scholar 

  • Jones, C. Vaughan and Morris, John R. (1984) Instrumental Price Estimates and Residential Water Demand, Water Resources Research, Vol. 20, 2, 197–202.

    Google Scholar 

  • Jordan, Jeffrey L. (1994) The Effectiveness of Pricing as a Stand-Alone Water Conservation Program, Journal of the American Water Resources Association, Vol. 30, 5, 871–877.

    Google Scholar 

  • Lansey, Kevin E., et al. (1989) Methods to Analyze Replacement-Rehabilitation of Water Distribution System Components, in Larry W. Mays (ed)., Reliability Analysis of Water Distribution Systems, ASCE, New York.

    Google Scholar 

  • Maddock, Thomas S. and Hines, Walter G. (1995), Meeting Future Public Water Supply Needs: A Southwest Perspective, Journal of the American Water Resources Association Vol. 31, 2, 317–329.

    Google Scholar 

  • Mays, Larry W. (ed). (1996) Water Resources Handbook, McGraw Hill, Inc., New York.

    Google Scholar 

  • Mays, Larry W., and Tung, Yeou-Koung (1992) Hydrosystems Engineering and Management, McGraw Hill, Inc., New York.

    Google Scholar 

  • Moncur, James E. T., (1987) Urban Water Pricing and Drought Management, Water Resources Research, Vol. 23, 3, 393–398.

    Google Scholar 

  • Moncur, James E. T., (1989) Drought Episodes Management: The Role of Price, Water Resources Bulletin, The American Water Resources Association Vol. 25, 3, 499–505.

    Article  Google Scholar 

  • Montgomery, Douglas C. and Runger, George C. (1994)Applied Statistics and Probability for Engineers,John Wiley and Sons, Inc., New York.

    Google Scholar 

  • National Research Council (1986) Drought Management and Its Impact on Public Water Systems, Colloquium 1, National Academy Press, Washington, D.C.

    Google Scholar 

  • Puckett, Larry J., (1981) Dendroclimatic Estimates of a Drought Index for Northern Virginia: Geological Survey Water Supply Paper 2080, United States Government Printing Office, Washington.

    Google Scholar 

  • Schneider, Michael L. and Whitlatch, E. Earl (1991) User-Specific Water Demand Elasticities, Water Resources Planning and Management, Vol. 117, 1, 52–73

    Google Scholar 

  • Sheer, D. P. (1980) Analyzing the Risk of Drought: The Occoquan Experience, Journal of American Water Works Association Vol. 72, 12, 246–253.

    Google Scholar 

  • Stella, Donald (1972) Drought in Arizona: A Drought Identification Methodology and Analysis, University of Arizona, Tucson, Arizona.

    Google Scholar 

  • Sister II, Glenn W. (1993) Ecological Risk Assessment,Lewis Publishers, Chelsea, Michigan.

    Google Scholar 

  • Tung, Yeou-Koung (1996) Uncertainty and Reliability Analysis, Larry W. Mays (ed)., Water Resources Handbook, McGraw Hill, Inc., New York.

    Google Scholar 

  • U.S. Soil Conservation Service Monthly Report (Jan. 1988), Colorado Water Supply Outlook, United States Department of Agriculture, US Government Documents.

    Google Scholar 

  • Wilhite, Donald A. (1993) Planning for Drought: A Methodology, in Wilhite, Donald A. (ed). Drought Assessment, Management and Planning: Theory and Case Studies, Kluwer Academic Publishers, Norwell, Massachusetts, 87–108.

    Google Scholar 

  • Wong, S.T. (1972) A Model on Municipal Water Demand: A Case Study of Northern Illinois, Land Economics, 34–44.

    Google Scholar 

  • Young, Robert A. (1973) Price Elasticity of Demand for Municipal Water: A Case Study of Tucson, Arizona, Water Resources Research, Vol. 9, 4, 1068–1072

    Google Scholar 

  • Young, Robert A. (1996) Water Economics, in Larry W. Mays (ed)., Water Resources Handbook, McGraw-Hill, Inc., N. Y.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Civil and Environmental Engineering, Arizona State University, Tempe, Arizona, 85287, USA

    Larry W. Mays (Prof. of Civil and Environmental Engineering)

Authors
  1. Messele Z. Ejeta
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Larry W. Mays
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Fluid Mechanics Group, Polytechnic University, Valencia, Spain

    Enrique Cabrera  & Jorge García-Serra  & 

Rights and permissions

Reprints and permissions

Copyright information

© 1999 Springer Science+Business Media Dordrecht

About this paper

Cite this paper

Ejeta, M.Z., Mays, L.W. (1999). Urban Water Pricing and Drought Management: A Risk Based Approach. In: Cabrera, E., García-Serra, J. (eds) Drought Management Planning in Water Supply Systems. Water Science and Technology Library, vol 32. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-1297-2_12

Download citation

  • DOI: https://doi.org/10.1007/978-94-017-1297-2_12

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-90-481-5119-6

  • Online ISBN: 978-94-017-1297-2

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics

Search

Navigation