According to the EU water framework directive 2000/60, water tariffs should be based on the full cost recovery principle, including scarcity and external effects. To disregard these two aspects is not only conceptually misleading, as we try to show, but also leads to determine a wrong, distorted tariffs. Our tentative application to the italian case shows, for example, that water tariffs should be up to three times higher than the actual ones, revealing a significant distortion.

D'Amato, A., Castellucci, L. (2005). An Exercise on the optimal use of groundwater resources.

An Exercise on the optimal use of groundwater resources

D'AMATO, ALESSIO;CASTELLUCCI, LAURA
2005-10-13

Abstract

According to the EU water framework directive 2000/60, water tariffs should be based on the full cost recovery principle, including scarcity and external effects. To disregard these two aspects is not only conceptually misleading, as we try to show, but also leads to determine a wrong, distorted tariffs. Our tentative application to the italian case shows, for example, that water tariffs should be up to three times higher than the actual ones, revealing a significant distortion.
en
D'Amato, A., Castellucci, L. (2005). An Exercise on the optimal use of groundwater resources.
D'Amato, A; Castellucci, L
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/123
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