In many parts of California, prices were set by water districts so that agricultural users pay far less than residential users compared to the true cost of water. While the adoption of a marginal cost pricing system would bring enormous efficiency gains, it would necessarily create losers and winners. To anticipate the issues of implementing such a pricing system in California, reformers need to expect which harvests in California and areas would have most impact. The case makes available the info essential to do a partial equilibrium incidence analysis, including data on the typical factor share of water by harvest, the average value created for each harvest by marginal uses of water, the degree of area variation in the proportion of non-water inputs, and also the role of each harvest in the California and global marketplace. HKS Case Number 710.0
PUBLICATION DATE: January 01, 1986 PRODUCT #: HKS537-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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