PRICING OF URBAN DRINKING WATER USING RAMSEY MODEL: A CASE STUDY OF NEYSHABOUR

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FALAHI M.A.; ANSARI HOSSEIN; DAVARI KAMRAN; SALEHNIA N.

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Journal: Iranian Journal of Economic Research Year:2009 | Volume:13 | Issue:38 Page(s): 217-241

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Title

PRICING OF URBAN DRINKING WATER USING RAMSEY MODEL: A CASE STUDY OF NEYSHABOUR

Author(s)

FALAHI M.A. | ANSARI HOSSEIN | DAVARI KAMRAN | SALEHNIA N. | Issue Writer Certificate

Keywords

TARIFFSQ2

PRICINGQ2

DRINKING WATERQ3

RAMSEY MODELQ3

THE WATER AND WASTEWATER COMPANYQ3

NEYSHABOURQ3

Abstract

Water is a necessary and scarce good that requires new strategies for allocation and optimal use. we. Water PRICING and levying suitable TARIFFS subject to social welfare maximization are the economic solution to this problem. In this study, we have considered available TARIFFS in domestic water sector of the city of NEYSHABOUR. According to current tariff problems, new TARIFFS are offered by using RAMSEY MODEL with the target of maximization of social welfare. Finally, Ramsey TARIFFS are modified based on two scenarios. In the first one, we incur less cost to customers with paying a subsidy about 135.5 Rial/m3/year by government. In this scenario, the minimum cost is zero for users with consumption less than 5 m3/month and the maximum cost is 1216 Rial/m3/month for users with consumption more than 30 m3/month. In the second one, losses related to low income group’s paying are compensated by high income users. So, minimum cost is zero for users with consumption less then 5 m3/month, and maximum cost is 1980 Rial/m3/month for users with consumption more than 40 m3/month. In these two scenarios, THE WATER AND WASTEWATER COMPANY would be in the break even point.

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APA: Copy

FALAHI, M.A., ANSARI, HOSSEIN, DAVARI, KAMRAN, & SALEHNIA, N.. (2009). PRICING OF URBAN DRINKING WATER USING RAMSEY MODEL: A CASE STUDY OF NEYSHABOUR. IRANIAN ECONOMIC RESEARCH, 13(38), 217-241. SID. https://sid.ir/paper/2645/en

Vancouver: Copy

FALAHI M.A., ANSARI HOSSEIN, DAVARI KAMRAN, SALEHNIA N.. PRICING OF URBAN DRINKING WATER USING RAMSEY MODEL: A CASE STUDY OF NEYSHABOUR. IRANIAN ECONOMIC RESEARCH[Internet]. 2009;13(38):217-241. Available from: https://sid.ir/paper/2645/en

IEEE: Copy

M.A. FALAHI, HOSSEIN ANSARI, KAMRAN DAVARI, and N. SALEHNIA, “PRICING OF URBAN DRINKING WATER USING RAMSEY MODEL: A CASE STUDY OF NEYSHABOUR,” IRANIAN ECONOMIC RESEARCH, vol. 13, no. 38, pp. 217–241, 2009, [Online]. Available: https://sid.ir/paper/2645/en

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