Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Revenue instability induced by conservation rates
When a utility's costs change quickly, rates can be designed to correctly hedge against revenue uncertainty
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 suppliers' 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.
Revenue instability induced by conservation rates
When a utility's costs change quickly, rates can be designed to correctly hedge against revenue uncertainty
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 suppliers' 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.
Revenue instability induced by conservation rates
Chesnutt, Thomas W. (Autor:in) / McSpadden, Casey (Autor:in) / Christianson, John (Autor:in)
Journal ‐ American Water Works Association ; 88 ; 52-63
01.01.1996
12 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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