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Costs of Nitrogen Runoff for Rural Water Utilities: A Shadow Cost Approach
- Source :
- Land Economics. 93:12-39
- Publication Year :
- 2017
- Publisher :
- University of Wisconsin Press, 2017.
-
Abstract
- This paper explores the interactions among scale and density economies, productive efficiency, water quality, and customer characteristics, and their impact on the costs of delivering treated drinking water. Implicit benefits of nitrogen abatement are also derived and hypothesis tests concerning their hypothesized drivers are conducted. Key findings are that nitrogen removal costs increase with rising raw water nitrogen concentration coming from agricultural activities, and that network density and system size matter in determining average total costs of community water systems. Merging water systems to take advantage of scale economies may be difficult due to the heterogeneity of the sector, however.
- Subjects :
- Productive efficiency
Economics and Econometrics
Natural resource economics
business.industry
Total cost
05 social sciences
Cost approach
010501 environmental sciences
Environmental Science (miscellaneous)
01 natural sciences
Economies of scale
Agriculture
0502 economics and business
Economics
Water quality
050207 economics
Raw water
business
Surface runoff
0105 earth and related environmental sciences
Subjects
Details
- ISSN :
- 15438325 and 00237639
- Volume :
- 93
- Database :
- OpenAIRE
- Journal :
- Land Economics
- Accession number :
- edsair.doi...........580afae6e08d2764cca9dd9b83cd2356