Abstract:Water resources can be managed efficiently by using cost-reflective pricing. This book focused on the pipe-borne water sector in Sri Lanka and evaluated alternative pricing structures in terms of economic efficiency, equity and financial viability. This required an understanding of consumer behaviour and the cost structures of the NWSDB. The analyses reviewed the relevant theoretical and applied basis for water pricing and then empirically analysed the cost, demand and welfare implications of pipeborne water in Sri Lanka. Very few studies have explored the efficient pricing policies and other related welfare aspects for developing countries. This is the only study to examine different pricing structures for water in a comprehensive framework involving demands, costs and welfare aspects for Sri Lanka. The findings presented here are important for policy makers and relevant authorities who are increasingly paying attention to efficiency and expansion of the pipe-borne water coverage.
This concluding chapter provides some concluding remarks of the book and the achievements of the book in section 8.1. Under this section, conclusions of the book are reported using various headings, which may relate to conclusions from more than one chapter. Policy implications are discussed in section 8.2 and the topics for future research are outlined in the final section, section 8.3.
The water supply decisions for Sri Lanka in the past have been implemented with little regard for the links between demand, cost and pricing; therefore, this book links these components of optimal pricing problems. Most importantly, the approach undertaken here allows the measurement of parameters of water production and consumption including economies of scale, cost-output elasticities and price and income elasticities of demand. The results are of interest to scholars in applied research as well as those involved in public utilities and regulation.
Document Type: Research Article
Publication date: January 1, 2011