Revenue instability induced by conservation rates
Abstract
The shift toward conservation rate structures, although they may provide better incentives to use scarce water wisely, changes who pays what and can increase the variability of future revenue streams to the water agency. Though the definition of the correct rate structure varies by community, the managerial strategies necessary to cope with the uncertainty brought about by conservation rate structures apply universally. Revenue instability directly increases water supplier`s borrowing costs and adds indirect costs in the form of more complicated planning to provide for a reliable future water supply. This article describes an empirical study using data from two water agencies that have adopted conservation rate structures. The article proposes ways quantitative tools may be used to (1) measure and cope with added uncertainty and (2) make explicit the magnitude of trade-offs between revenue stability, equity, and the provision of incentives for efficient use of water resources.
- Authors:
-
- A and N Technical Services, Santa Monica, CA (United States)
- A and N Technical Services, Washington, DC (United States)
- Univ. of San Diego, CA (United States)
- Publication Date:
- OSTI Identifier:
- 182925
- Resource Type:
- Journal Article
- Journal Name:
- Journal of the American Water Works Association
- Additional Journal Information:
- Journal Volume: 88; Journal Issue: 1; Other Information: PBD: Jan 1996
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; WATER UTILITIES; ECONOMICS; WATER RESOURCES; RESOURCE CONSERVATION; WATER SUPPLY; WATER USE
Citation Formats
Chesnutt, T W, McSpadden, C, and Christianson, J. Revenue instability induced by conservation rates. United States: N. p., 1996.
Web.
Chesnutt, T W, McSpadden, C, & Christianson, J. Revenue instability induced by conservation rates. United States.
Chesnutt, T W, McSpadden, C, and Christianson, J. 1996.
"Revenue instability induced by conservation rates". United States.
@article{osti_182925,
title = {Revenue instability induced by conservation rates},
author = {Chesnutt, T W and McSpadden, C and Christianson, J},
abstractNote = {The shift toward conservation rate structures, although they may provide better incentives to use scarce water wisely, changes who pays what and can increase the variability of future revenue streams to the water agency. Though the definition of the correct rate structure varies by community, the managerial strategies necessary to cope with the uncertainty brought about by conservation rate structures apply universally. Revenue instability directly increases water supplier`s borrowing costs and adds indirect costs in the form of more complicated planning to provide for a reliable future water supply. This article describes an empirical study using data from two water agencies that have adopted conservation rate structures. The article proposes ways quantitative tools may be used to (1) measure and cope with added uncertainty and (2) make explicit the magnitude of trade-offs between revenue stability, equity, and the provision of incentives for efficient use of water resources.},
doi = {},
url = {https://www.osti.gov/biblio/182925},
journal = {Journal of the American Water Works Association},
number = 1,
volume = 88,
place = {United States},
year = {Mon Jan 01 00:00:00 EST 1996},
month = {Mon Jan 01 00:00:00 EST 1996}
}