Bringing competition to urban water supply

Hugh Sibly, Richard Tooth*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

This paper proposes a market-based reform that would introduce competition into the provision of urban water. This proposal calls for a decoupling of infrastructure control and ownership of water whereby the property rights to water would be transferred to private hands. The proposal involves periodically allocation (e.g. by auction) of existing water stock held in urban catchments to virtual suppliers who then compete in providing bulk water. This change when coupled with effective third party access and retail competition would lead to a competitive market for the provision of urban water. The approach aims to address concerns over inefficient pricing and infrastructure provision under the current arrangement.

Original languageEnglish
Pages (from-to)217-233
Number of pages17
JournalAustralian Journal of Agricultural and Resource Economics
Volume52
Issue number3
DOIs
Publication statusPublished - 2008

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