An Exercise on the Optimal Use of Groundwater Resources

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Fascicle

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2006 - 4

Title

An Exercise on the Optimal Use of Groundwater Resources

Authors

Laura Castellucci, Alessio D'Amato

Publisher

Vita e Pensiero

Format

Article |

Pdf

Online from

10-2006

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

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Description

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 a wrong, distorted tariff. Our attempt to measure such distortion with respect to the italian case shows, for example, that water tariffs should be up to three times higher than the actual ones. That is to say, a significant correction in water prices is needed to achieve efficiency.