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Within the new public management (NPM) context, this paper aims to examine the inclusion of equity issues in pricing policy development and implementation in the water industry in Australia.

A review of literature relevant to the pricing of water shows equity issues have four dimensions which tend to be, at best, only implicitly considered. An empirical illustration employing a transaction cost framework is provided of a case in which change in pricing mechanisms was strongly suggested.

An equity paradox emerges as an explanation of why 63.7 per cent of Queensland urban water entities chose not to adopt the user-pays pricing mechanism for water. This suggests that the balance between “equity” and “efficiency” continues to be required in policy development for water pricing. Equity of access and that of distribution continue to be significant factors. As well, equity of interest and of return must be considered, especially under a user-pays pricing mechanism.

In respect of NPM considerations, it is argued that consideration of the four dimensions of equity in the implementation of a water pricing policy will resolve contradictions with, and paradoxes met in dealing with efficiency.

The argument used in the paper is interdisciplinary. References and terms used include those which are social, economic, and environmental from an accounting and management perspective.

The purpose of this study is to analyze the affordability and sustainability of residential water consumption in Ecuador, a developing country.

To determine affordability, the authors assess water consumption and its distribution across different income levels of the population in the three main cities: Cuenca, Guayaquil and Quito. The authors then simulate the effects of a pricing policy on sustainability by deriving demand elasticities through a quadratic almost ideal demand system (QUAIDS).

Results show that Ecuador has low water tariffs with respect to other cities in Latin America, which points to its affordability. However, sustainability might not be guaranteed since consumption is overall higher than the level suggested by the World Health Organization. From an economic point of view, this could be motivated by the low tariffs. Indeed, the simulation of a pricing policy shows that higher prices can significantly reduce demand for most of the sample. However, in low-income households this reduction may compromise vital consumption.

This research has important implications in terms of stimulating the discussion of how water affordability and sustainability can be achieved. For the case study, Ecuador, the results indicate that sustainability may not be guaranteed and that policies need to be designed to encourage it. Another implication is that population income levels should be considered to avoid negative effects for the most vulnerable groups. The main limitations of this study are methodological. First, the QUAIDS model is based on a conditional demand model (Zhen et al., 2013), which does not take into account spending on other goods. Second, data availability is limited and prevents a deeper analysis.

To the best of the authors' knowledge, this is the first study to analyze these issues in Ecuador, a country that recognizes the human right to water at the constitutional level.

Local governments are often forced to purchase expertise for non-recurring analyses, such as rate setting for water and sewer services, because it is not cost-effective for these governments to maintain such expertise in-house or because independent analyses are preferred by watch-dog agencies or mandated by state statutes. However, like many ostensibly value-neutral analytical studies, these studies inevitably entail policy choices of which elected policy makers may not be aware. External analysts may not be aware of idiosyncratic factors, and they apply boilerplate perspectives that may not be responsive to local preferences. These perspectives limit policy options, although they may appear to be value-neutral. Policy makers must take an active role in these analytical studies in order to ensure that local preferences and specific factors are considered. Citizen committees comprised of residents with the necessary expertise, or experts from local colleges and universities may be able to provide the necessary oversight.

Zimbabwe is a small developing country that has been independent for 17 years. In its short post‐colonial history it has been attempting to grapple with lessening the imbalances on resource distribution, like land, water and other natural resources, from its colonial path. The path towards achieving “growth and equity” in the economy has not been easy. It has moved from a centrist approach to one that is governed by market forces ushered in by economic reforms that encourage deregulation of state controls. Water pricing policy and distribution are reviewed, in the light of this background. Some key issues relating to institutions, legislation, and economic theory considerations in the management of scarce water resources are discussed in the light of Zimbabwe’s experience.

Increasing environmental concerns have placed the need for an enhanced water resources management on the policy agenda. In this context, a restrictive regulation of water withdrawals for irrigation has gained in importance. The purpose of this paper is to investigate how a reduction in water quotas and increased water prices affect risk‐efficient crop choices and the related economic implications for northern German farmers.

The authors apply a whole‐farm risk programming approach to a typical arable farm in northern Germany. By using irrigation field trials, production activities with varying irrigation intensities and inherently incorporated crop yield uncertainty are defined.

In contrast to increased water prices, a reduction in water quotas leads to higher water savings and lower economic disadvantages for farmers. Due to an adjusted portfolio crop choice, as well as irrigation intensity, the reduction in the expected total gross margin is partially offset.

This example ensures volumetric water monitoring at the farm level which, however, remains a major pitfall in many other countries. From a methodological perspective, the crop yield distribution choice might affect the findings. Likewise, the consideration of downside risk in an irrigation context appears to be interesting for future research.

This is the first paper to compare the implications of differentiated water quotas and water pricing schemes suggested by the European Water Framework Directive, while taking risk‐efficient crop portfolio considerations into account. This approach facilitates water reallocation not only between crops, but also in terms of the crop‐specific irrigation intensity. Crop yields are based on a unique panel of micro data rather than expert opinions or simulations.

The purpose of this paper is to provide insights into the workings of the internal specifier/provider arrangement, a new organizational form that is not required by government mandate but has become common place in the Australian public sector.

The case study empirics take place in a large local government water authority. Data were collected from face‐to‐face interviews with 26 managers using a semi‐structured interview schedule and from internal and public documents relating to the case.

The following five “so what” lessons are identified: private sector co‐ordination and management mechanisms such as transfer pricing can be relied upon to help reduce the ambiguity surrounding the specifier/provider model; the providers are likely to be more anxious about the introduction of the model because poorly perceived performance may result in outsourcing; to improve the ability of the organization for co‐ordinating activities the model requires clearly defined specifier and provider roles and tasks; the service level agreement is an important communication device for clarifying roles and expectations; and increasing the number of sub‐divisions complicates the ability of the organization to access suitable human resources and to communicate effectively with their employees and minimize employee stress.

The findings of this paper are likely to be useful for other organizations faced with similar pressures as to deal with those pressures require new and innovative ways of working.

This paper contributes to our understanding of the new organizational forms emerging in the public sector and the issues surrounding their implementation. The main contribution of this paper is a discussion of the lessons that were learned from the employees in the case organization in their attempt to change the organization from its traditional bureaucratic operational procedures to cost center structures using the internal specifier/provider model.

The requirement of full cost recovery for water services including environmental and resource costs in accordance with the polluter pays principle in Art. 9 EU-Water Framework Directive is a unique provision in the history of the European environmental law. The wording of the provision is a compromise between the Council's and the Parliament's versions that mirrors different conceptual ideas on how to internalize environmental and resource costs. Art. 9 now contains a two-step concept for the achievement of the aim. The uniform implementation of the full cost-recovery calls for common accounting standards for the calculation of financial cost and a common methodology for the estimation of environmental and resource costs on the European level. In Germany, the requirements of the first step are partly fulfilled, but necessities of the second step are not being met at the moment.

Freshwater availability is reducing globally, due to increasing demand with population growth and climate change and is disproportionately impacting developing countries. This study aims to investigate the dynamics of water access and consumption across all regions of Thailand with various characteristics and water systems. Understanding the relationship between institutional, economic and climate variables in Thailand’s water management is important for water scarcity planning. Our paper fills a gap in the literature by examining the determinants of water consumption and exploring potential water management policies.

The authors empirically analyze the determinants of water consumption in Thailand, including institutional, economic and climate variables. The authors use data sets from both metropolitan and provincial waterworks authorities (PWA), as well as economic and meteorological macro-level data. The authors also adopt an auto-regressive distributed lag (ARDL) model and a Johansen cointegration test to estimate short- and long-run effects of the variables on water consumption.

The authors confirm a negative relationship between water pricing and consumption and verify a positive relationship between economic growth and water consumption across most regions of Thailand. Furthermore, the authors reveal a clear relationship between climate factors and water consumption and an inverse relationship between income and water consumption in metropolitan area. Findings indicate that authorities, especially PWA, should examine high water use in agriculture and develop regulations to ensure equitable water distribution to sustain economic growth. The authors recommend that water prices are increased within specific income thresholds to prevent impacting low-income families and to secure higher public revenue. In pursuit of environmental sustainability, the authors also recommend increasing public awareness of freshwater scarcity through education programs and investment in water-saving technologies. Differences among regions should be considered when developing water management strategies, which could be monitored through the respective water boards.

This study provides deep insight into the key factors that drive both water prices and water consumption in poor and rich areas. The unique nature of the research indicated that the paper will be of interest to policymakers and the academic community. The findings are relevant for water consumption management in Thailand and other developing countries with similar characteristics.

This paper aims to discuss the Egyptian experience in futures studies through the conducting of a foresight study into the future of water in Egypt to 2025.

Futures wheel, questionnaires, focus groups, and scenarios workshops have been used in this study.

The paper represents the obstacles that had to be surmounted in engaging key stakeholders in the foresight study and suggests a set of conclusions and recommendations that could help in a better integration of futures studies into the Government's strategic planning process.

The paper introduces a tailored methodology for a successful scenarios building process in Egypt. Also, it advises on how futures studies could be integrated into the policy making process in Egypt.

Economic development requires the use of natural resources. Increasing population makes increasing demand on such resources thereby leading to the degradation of the environment. Excessive use of resources can lead to a situation where declining supply can no longer satisfy the demand. Hence, without conservation and prudent management of resources the environment cannot be preserved. This paper examines the case of water supply, which is the fundamental requirement for the sustenance of all life forms on earth. The human population is expected to double to at least 8 billion in the next 30 years and the worldwide demand for water is estimated to increase by a staggering 650 percent. However, the total supply of fresh water in the world is limited as 99 percent of the earth’s water is either saline or frozen. Of the remaining 1 percent most is ground water and soil moisture. The net availability of fresh water for human consumption is one‐hundredth of 1 percent. And not even all of that can be used. Hence, how can the continued availability of fresh water resources to satisfy the growing need of the rising population be satisfied? Conservation of fresh water can be achieved to some extent by reducing the demand by imposing a price/or raising the prevailing price on the use of water. However, while conservation can stretch the supply by reducing demand, for ensuring the long‐run adequacy of supply, it is necessary to apply a prudent environmental management policy which will prevent the destruction of forests and natural resources and apply a policy of active regeneration of forests. While the supplies of water make the forests survive and grow, preservation of forests allows water resources to survive. Forests cannot be preserved unless the destruction of hundreds and thousands of wetlands to make way for human settlement and industrial development is prevented and property rights of landless people are recognised. Thus for a prudent and efficient management of water resources to be effective, the state must adopt the ecologically sustainable approach to development. This paper examines these issues.