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Optimal Pricing of Water: Optimal Departures from the Inverse Elasticity Rule

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dc.contributor.author Sağlam, Yiğit
dc.date.accessioned 2011-02-18T01:27:46Z
dc.date.accessioned 2022-07-05T01:15:52Z
dc.date.available 2011-02-18T01:27:46Z
dc.date.available 2022-07-05T01:15:52Z
dc.date.copyright 2011
dc.date.issued 2011
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/18553
dc.description.abstract I consider the problem of water usage, developing a model to analyze the optimal pricing of water within a second-best economy. Consumers are assumed to have two main needs for water|drinking and non-drinking. Water is also used to produce food: The agricultural sector has a derived demand for water. As a water supplier, the local government may price discriminate across consumers and farmers. I introduce the second-best pricing scheme, derive conditions for the marginal-cost pricing and inverse-elasticity rules to apply, and analyze when it is optimal for the government to optimally deviate from these two pricing schemes. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries SEF Working paper: 03/2011 en_NZ
dc.rights.uri http://www.victoria.ac.nz/sef/
dc.subject water en_NZ
dc.subject model en_NZ
dc.subject optimal en_NZ
dc.subject pricing en_NZ
dc.title Optimal Pricing of Water: Optimal Departures from the Inverse Elasticity Rule en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit School of Economics and Finance en_NZ
vuwschema.subject.anzsrcfor 149999 Economics not elsewhere classified en_NZ
vuwschema.subject.marsden 140201 en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 389999 Other economics not elsewhere classified en_NZ

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