Whose Values Count? Demand Management for Melbourne's Water*
Article first published online: 3 AUG 2006
Volume 82, Issue Supplement s1, pages S54–S63, September 2006
How to Cite
EDWARDS, G. (2006), Whose Values Count? Demand Management for Melbourne's Water. Economic Record, 82: S54–S63. doi: 10.1111/j.1475-4932.2006.00332.x
- Issue published online: 3 AUG 2006
- Article first published online: 3 AUG 2006
An assessment is provided of Melbourne's rising block tariff for water and its prescriptive regulation of water use through non-price restrictions. The three-step rising block tariff fares poorly on economic efficiency and on widely used notions of equity. A two-block tariff could remove much of the inefficiency in a three-block tariff, but one-price-for-all water would be the most efficient way to ration water on conventional definitions. The non-price restrictions on water use are prescriptive, denying households the opportunity to decide how to make any cuts in water use required of them. State values usurp private values.