Instituting Increasing Block Rate Pricing as a Water Conservation Measure

by Stuart M. Stein, GKY & Associates Inc, United States,
Roger Trautman Kilgore, GKY & Associates Inc, United States,
G. Kenneth Young, GKY & Associates Inc, United States,



Document Type: Proceeding Paper

Part of: Critical Water Issues and Computer Applications

Abstract:

The objective of this paper is to demonstrate the benefits of an increasing block rate pricing policy as a water conservation measure. By changing the pricing structure, demands will change in accordance with the marginal price elasticity of demand. A methodology has been developed to calculate an increasing block rate pricing scheme which will keep total revenues to the water suppliers equivalent to those projected under present pricing schemes.

Subject Headings: Water conservation | Pricing | Water supply | Water resources | Water demand | Water supply systems | Water policy

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