Cost Recovery

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William K Easter - One of the best experts on this subject based on the ideXlab platform.

  • who pays for irrigation Cost Recovery and water pricing
    Water Policy, 2007
    Co-Authors: William K Easter
    Abstract:

    The objective of this paper is to develop guidelines for improving Cost Recovery and reducing water use per unit of output. The guidelines were developed from a review of studies of irrigation reforms and interviews with World Bank staff members who have responsibility for irrigation sector reforms. From these studies and interviews, we distilled specific reforms that were important in improving Cost Recovery or reducing water use, or both. The paper lists the reforms that have raised collection rates and provides examples of what different countries have done to recover project Costs and collect water charges. It also suggests alternatives for designing water charges that will give farmers an incentive to make better use of their water. The final section provides a summary of the reforms that are important for increasing Costs Recovery and encouraging farmers to improve their use of water.

  • Cost Recovery and water pricing for irrigation and drainage projects
    2005
    Co-Authors: William K Easter
    Abstract:

    The objective of this paper is to develop guidelines for improving Cost Recovery and reducing water use per unit of output. The guidelines were developed from a review of studies of irrigation reforms and interviews of 20 World Bank staff members with responsibility for irrigation sector reforms in countries from Asia to Latin America (names listed in Appendix 1). From these studies and interviews, we distilled specific reforms that are important in improving Cost Recovery or reducing water use, or both. Reforms needed by individual countries or projects will depend on their institutional arrangements as well as the type of irrigation and its physical condition. The second section of the paper begins by listing some reasons for low collections and provides an overview of some of the reforms that have raised collection rates. In the next section, the authors review Cost-Recovery principles and provide some examples of what different countries have done to recover project Costs and collect water charges from users. The focus in the fourth section is on designing water charges or water markets that will give farmers an incentive to make better use of their water by reducing the amount of water used per unit of output. In the fifth section, case studies are used to determine what reforms can help improve Cost Recovery and increase collection rates. In addition, water pricing reforms are identified that will encourage farmers to reduce their water use per unit of output. The final section provides a summary of the reforms that are important for increasing Cost Recovery and encouraging farmers to improve their use of water.

Tapio S. Katko - One of the best experts on this subject based on the ideXlab platform.

  • Appropriate pricing and Cost Recovery in water services
    Journal of Water Supply Research and Technology-aqua, 2003
    Co-Authors: Osmo T. Seppälä, Tapio S. Katko
    Abstract:

    The viability of water services is still constrained by inadequate Cost Recovery, especially in developing economies. This paper reviews and analyses recent issues and international experiences from water pricing policies and practices. Full Cost Recovery (FCR) is becoming a recognised policy objective in industrial economies, although irrigation water tariffs are often subsidised. In developing economies water tariffs are generally below the economic Cost of water, and tariffs are not adjusted regularly. Case studies from Kenya and Zanzibar illustrate the importance of an appropriate policy environment and institutional arrangements. The main factors contributing to poor economic performance of water utilities are highlighted. Water utilities in developing economies need more management autonomy.

  • Cost Recovery in Water Services
    Water Science and Technology, 1992
    Co-Authors: Tapio S. Katko
    Abstract:

    The objective of the study was to find out to what extent water charges could be used in the developing world. This paper presents a Cost Recovery model primarily for water supply and discusses its implications for sewerage services. The model has four key elements: benefits and Costs, predictability of consumer contributions, water tariffs, and fee collection and financial management. The study shows that water charges are a necessity in developing countries, as in the developed world, and consumers are more able and willing to pay than has been thought. Adequate sewerage and sewage charges should be introduced universally.

  • Cost Recovery in water supply in developing countries
    International Journal of Water Resources Development, 1990
    Co-Authors: Tapio S. Katko
    Abstract:

    This article discusses trends in Cost Recovery policies, Costs, consumers’ ability and willingness to pay, water tariff structures, fee collection and financial management. Cost Recovery, operational technology and appropriate institutions are the key requirements of sustainability. Commonly practised water vending and reselling, while a good indication of actual willingness to pay for water, is a very Costly system. In practice free water supply benefits the rich. Progressive tariffs and innovative collection methods should be used instead.

Ramon Salagarrido - One of the best experts on this subject based on the ideXlab platform.

  • tariffs and Cost Recovery in water reuse
    Water Resources Management, 2013
    Co-Authors: Maria Molinossenante, Francesc Hernandezsancho, Ramon Salagarrido
    Abstract:

    In water stressed areas, water reuse has been identified as a key component of integral water resource management. However, the economics of water reuse projects are a major barrier for their implementation. The objectives of pricing for water demand management, pricing for encouraging the use of regenerated water, and pricing for Cost Recovery are not simultaneously achievable. In this paper, the major constraints hindering the implementation of the Cost Recovery principle in water reuse have been identified. Moreover, a two-part tariff with a combination of a decreasing and increasing rate structure for the variable charge is proposed as a partial solution to improve water reuse pricing. Finally, some policy recommendations from the perspective of integrated water resource management are formulated.

Ramteen Sioshansi - One of the best experts on this subject based on the ideXlab platform.

  • Using Storage-Capacity Rights to Overcome the Cost-Recovery Hurdle for Energy Storage
    IEEE Transactions on Power Systems, 2017
    Co-Authors: Ramteen Sioshansi
    Abstract:

    Energy storage is unique in that it can provide multiple services. This feature raises Cost-Recovery issues for storage, due to the combination of competitive markets and ratebased Cost Recovery used in many power systems today. This hybrid regulatory paradigm relies on classifying assets as providing competitively prices or unpriced services and handling Cost Recovery based on that classification. Some recent regulatory precedents suggest that storage developers must choose between classifying their assets as providing competitively priced or unpriced services. In the former case, storage Costs must be recovered through the market. If an asset is classified as providing only unpriced services, Costs can be recovered through the ratebase. This regulatory design can hamper Cost Recovery for storage and may lead to inefficient storage investment and use. We propose an alternate solution whereby storage-capacity rights are auctioned to third parties that use their rights for priced or unpriced services. Storage-capacity rights disentangle storage Cost Recovery from the regulatory treatment of its end use. We formulate the storage-capacity auction model and demonstrate how to efficiently price storage-capacity rights. We show that the revenues earned by the storage owner through the auction equals the imputed marginal value of storage capacity, as revealed by the market bids.

André De Palma - One of the best experts on this subject based on the ideXlab platform.

  • Cost Recovery from congestion tolls with long-run uncertainty
    Economics of Transportation, 2014
    Co-Authors: Robin Lindsey, André De Palma
    Abstract:

    According to the Cost Recovery Theorem the revenues from optimal congestion tolls pay for the capacity Costs of an optimal-sized facility if capacity is perfectly divisible, and if user Costs and capacity Costs have constant scale economies. This paper extends the theorem to long-run uncertainty about investment Costs, user Costs, and demand. It proves that if constant scale economies hold at all times and in all states, and if the toll can be varied freely over time and by state, then expected discounted congestion toll revenues cover expected discounted investment Costs over a facility׳s lifetime. If the marginal Cost of investment is constant and investment is reversible, expected Cost Recovery also holds for each investment. If demand is relatively price inelastic, Cost Recovery is sensitive to estimated initial demand and estimated growth rate of demand. Natural variability in demand can result in substantial surpluses or deficits over a facility׳s lifetime.

  • Cost Recovery from Congestion Tolls with Long-run Uncertainty
    2013
    Co-Authors: Robin Lindsey, André De Palma
    Abstract:

    According to the seminal Cost Recovery Theorem the revenues from congestion tolls pay for the capacity Costs of an optimal-sized facility if capacity is perfectly divisible, and if user Costs and capacity Costs have constant scale economies. This paper extends the Theorem to long-run uncertainty about investment Costs, user Costs, and demand. It proves that if constant scale economies hold at all times and in all states, and if the toll can be varied freely over time and by state, then expected discounted toll revenues cover expected discounted investment Costs over a facility's lifetime. If the marginal Cost of investment is constant and investment is reversible, then expected Cost Recovery is also achieved for each investment. Cost Recovery is quite sensitive to estimated initial demand, and moderately sensitive to the estimated growth rate of demand. Natural variability in demand can result in substantial surpluses or deficits over a facility's lifetime.

  • Chapter 2 Transport user charges and Cost Recovery
    Research in Transportation Economics, 2007
    Co-Authors: André De Palma, Robin Lindsey
    Abstract:

    According to the celebrated Cost Recovery theorem, the degree of Cost Recovery from optimal user charges depends on the extent of scale economies in user Costs, infrastructure construction Costs and operating Costs. This chapter presents the theorem, and reviews various generalisations of it. It then summarises empirical evidence by transport mode on the degree of scale economies or diseconomies in usage and in infrastructure, and the predicted surpluses or deficits with efficient pricing and investment. It also discusses some of the practical challenges in translating the Cost Recovery theorem into policy.

  • Transport User Charges and Cost Recovery
    2007
    Co-Authors: André De Palma, Robin Lindsey
    Abstract:

    According to the celebrated Cost Recovery theorem, the degree of Cost Recovery from optimal user charges depends on the extent of scale economies in user Costs, infrastructure construction Costs and operating Costs. This chapter presents the theorem and reviews various generalizations of it. The chapter then summarizes empirical evidence by transport mode on the degree of scale economies or diseconomies in usage and in infrastructure and the predicted surpluses or deficits with efficient pricing and investment. It also discusses some of the practical challenges in translating the Cost Recovery theorem into policy.