• Journal of Korea Water Resources Association
• /
• v.32 no.5
• /
• pp.537-545
• /
• 1999

This study examines three counterplans for the improvement in price structure of Korean multi-regional water supply system. First, price differentiation between industrial and residential water uses is analyzed using several pricing methods. It has been estimated that the industrial water price by the Ramsey pricing method is needed to be two to two and half times higher than the price of residential water to achieve maximum social welfare. Second, peak-load pricing is then studied to seek for the effectiveness of seasonal differentiation in water price. It has been found that consideration of dam facilities and their functions is the key factor for the effectiveness of the seasonal differentiation in water price. Finally, the discussion about the introduction of contract pricing system to the multi regional water supply system to achieve optimal investment plan for the future water demand is presented. We has found that the introduction of contract pricing system will greatly increase the efficiency in future investment plan of the multi-regional water supply system.