Date of Degree
2010
Document Type
dissertation
Degree Name
PhD (Doctor of Philosophy)
Department
Economics
First Advisor
Harry J. Paarsch
Second Advisor
Srihari Govindan
Abstract
In the first chapter, I consider the institutional structures as well as the doctrines typically encountered in the surface water sector. To investigate the sources and methods of government support in the water sector, I categorize different sorts of government support according to the location of water along the water cycle. I conclude the section with examples of observed water markets.
In the second chapter, I consider the problem of water usage, developing a model to analyze the optimal pricing of water within a second-best economy. 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, and analyze when the government optimally deviates from these two pricing schemes.
In the third chapter, I provide an analysis of the data I collected from Turkey. First, I examine the data on reservoir flows, including service share and fixed costs of the reservoirs. Then, I provide details about the relationship between the quantity and price of irrigation and of tap water.
Finally, in the fourth chapter, I apply the theoretical framework to the data from Turkey. In Turkey, the current water-pricing policy is dictated by the sole objective of breaking-even in each period. This results in large withdrawals, which is not sustainable in the long-run, hence not optimal. I analyze the dynamic optimal water resource management problem of a benevolent government. I compare the implications of the current and the optimal pricing policies.
Pages
vii, 108
Bibliography
105-108
Copyright
Copyright 2010 Yiğit Sağlam
Recommended Citation
Sağlam, Yiğit. "Water scarcity and optimal pricing of water." dissertation, University of Iowa, 2010.
http://ir.uiowa.edu/etd/733.
Comments
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