TY  - JOUR
ID  - library_repository364
UR  - https://library.oum.edu.my/repository/364/
IS  - 13
A1  - Ghazali Mohayidin , 
A1  - Jalal Attari, 
A1  - Ahmad, Sagheri
A1  - Md Arrif Hussein, 
Y1  - 2009/12//
N2  - Water  is vital  for  life and plays  an essential  role  for economic development of countries. To address 
water  scarcity  issues,  better  pricing  has  been  recognized  as  an  important  tool.  In  this  paper  several 
empirical studies which highlight water pricing theories and related models have been reviewed. These 
theories  explain different  aspect of water pricing  that  can be used  as  a means  to  improve water use 
efficiency. Analysis of partial equilibrium can be viewed as effects of a policy on a specific sector  like 
agriculture, but an analysis of general equilibrium often  involves steady-state paths which  is  in  fact a 
macro-level approach. A comparison of  first best pricing with second best pricing models shows  that 
the  latter are possible when transaction costs are  included.  In the absence of storage capacities  limits 
and direct costs of water, development decision studies find that the price of water held in storage must 
rise  at  the  rate  of  interest  and  that  the  effect  of  discounting  is  to  cause  a  cycle  in  the water  price. 
Finally, recent evidence suggests that the short-run efficiency of marginal cost pricing can be extended 
to account for long-run fixed cost considerations. (Authors' abstract)
PB  - Academic Journals
JF  - African Journal of Agricultural Research
VL  - 4
KW  - Water pricing
KW  -  marginal value product pricing
KW  -  partial equilibrium
KW  -  general equilibrium
KW  -  marginal cost pricing
KW  -  average cost pricing
SN  - 1991-637X
TI  - Review of water pricing theories and related models
SP  - 1536
AV  - public
EP  - 1544
ER  -