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Estudios Gerenciales

Print version ISSN 0123-5923


MENDEZ SAYAGO, JHON ALEXANDER  and  MENDEZ SAYAGO, JOHANNA MILDRED. Water use fees Is this an instrument for efficient allocation of water or a mechanism for funding environmental management?. estud.gerenc. [online]. 2010, vol.26, n.115, pp.93-115. ISSN 0123-5923.

This article establishes the conditions for the distribution of a water flow among different users using the concept of aggregate economic efficiency. The complexity involved in the assessment of non-consumptive water uses was found to limit the problem of allocation to the implementation of a second-best solution. We conclude that the charging a rate based on an annual water scarcity index that results from a monthly average is an implementation error of environmental authorities which is detrimental to the preservation of the ecological water flow, and could also affect users downstream. Finally, it proposes a method for estimating the fee rate.

Keywords : Water use fees; economic efficiency; water resources.

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