Innovative water rates as a policy tool for drought response: Two case studies from Utah, USA
Robert B. Sowby, Andrew J. South
Abstract
Drought in the Western U.S. has elevated the need for innovative water pricing. We describe two utilities whose novel pricing structures reflect water availability and reasonable use expectations. One has a physical basis of water rights, landscape water needs, and irrigated area; the other has a hydrologic basis of an annual water supply forecast. Both utilities charge users tiered (increasing block) rates for an adjustable water allotment. The rates have proved hydrologically beneficial, socially equitable, and financially sustainable during the drought, suggesting that water pricing can be an effective policy tool for responsive water management.
Topics & Concepts
AllotmentWater pricingWater supplyWater useWater resource managementEnvironmental scienceWater resourcesNatural resource economicsBusinessEnvironmental economicsWater conservationEnvironmental resource managementEconomicsEnvironmental engineeringEcologyBiologyMarket economyWater resources management and optimizationWater-Energy-Food Nexus StudiesWater Systems and Optimization