Cost‐Reflective Pricing: Empirical Insights into Irrigators’ Preferences for Water Tariffs

23 Pages Posted: 13 Apr 2018

See all articles by Bethany Cooper

Bethany Cooper

University of South Australia - UniSA Business School

Lin Crase

La Trobe University - Business School

John M. Rose

The University of Sydney

Date Written: April 2018

Abstract

Using prices to improve the efficiency with which water resources are allocated is now widely accepted in principle if somewhat difficult to achieve in practice. Whilst there are some technical difficulties associated with full‐cost recovery in irrigation, the lack of political will to tackle reform remains a significant impediment. This article reports the results of an empirical investigation into farmers’ preferences for changes to water prices and tariff structures. We conclude that some of the preferences of farmers are conducive to price reform. We also find evidence that public subsidy of infrastructure in irrigation is not always aligned with the preferences of farmers.

Keywords: best‐worst scaling, cost recovery pricing, water reform

Suggested Citation

Cooper, Bethany and Crase, Lin and Rose, John M., Cost‐Reflective Pricing: Empirical Insights into Irrigators’ Preferences for Water Tariffs (April 2018). Australian Journal of Agricultural and Resource Economics, Vol. 62, Issue 2, pp. 256-278, 2018, Available at SSRN: https://ssrn.com/abstract=3161061 or http://dx.doi.org/10.1111/1467-8489.12242

Bethany Cooper (Contact Author)

University of South Australia - UniSA Business School

Adelaide, South Australia 5001
Australia

Lin Crase

La Trobe University - Business School ( email )

La Trobe University
Bundoora, Victoria, Victoria 3083
Australia
+61 02 60 583834 (Phone)
+61 02 60 583833 (Fax)

HOME PAGE: http://www.dbus.aw.latrobe.edu.au/wcb/schools/BUS/

John M. Rose

The University of Sydney ( email )

University of Sydney
Sydney, NSW 2006
Australia

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