Why do Queensland urban water entities resist the adoption of user pays pricing?

Hunt, Chris, and Dunstan, Keitha (2007) Why do Queensland urban water entities resist the adoption of user pays pricing? In: Proceedings from the 2007 AFAANZ Conference. From: 2007 AFAANZ Conference, 1-3 July 2007, Gold Coast, QLD, Australia.

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Abstract

This study is motivated by the apparent reluctance of Australian urban water entities to adopt the user pays pricing formula despite strong encouragement by Australian Governments to do so. Elements of contingency theory, political cost theory and transaction cost economics are employed in developing an empirical model to explain the differences between those Queensland urban water entities which have been persuaded to accept Government policy and those which have not. The Queensland urban water entities most resistant to adopting the user pays pricing formula were found to be those which faced the greatest potential economic wealth transfers combined with a less certain revenue base. The findings highlight the potential strategic uncertainty and political nature of the pricing of water and that this policy friction poses for government and regulators attempting to encourage the voluntary adoption of more efficient pricing formulas.

Item ID: 10296
Item Type: Conference Item (Refereed Research Paper - E1)
Keywords: uncertainty; political costs; transaction costs; commercialising public sector; water; user pays pricing policy
ISSN: 1328-780X
Date Deposited: 10 May 2010 04:10
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1501 Accounting, Auditing and Accountability > 150105 Management Accounting @ 100%
SEO Codes: 97 EXPANDING KNOWLEDGE > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services @ 100%
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