SLIDE 6 Back-of-the-envelope average cost pricing for Cambridge MA
$11,688,657 (FY 04 SW expenditures) 5.0 x 106 m2
(impervious surface)
=$2.34/m2 imperv.surf./year
City Stormwater fee per m2/year Topeka KS $0.12- $0.29 Raleigh NC $0.13- $0.52 Columbus OH $0.21 Orlando FL $0.44 Issaquah WA $0.67 Gieβen, FRG $0.86 (0.72 €) Köln, FRG $1.37 (1.15 €) Dresden, FRG $1.37 (1.15 €) Berlin, FRG $1.76 (1.479 €) Bonn, FRG $1.81 (1.52 €) Cambridge MA $2.34
Obstacles to efficient prices
US water services pricing policies No marginal cost pricing, no surplus, fees used
for current-year services
Limited or no capital costs in fees Public resistance to higher fees Down side of transparency “Paying twice”: believe that property taxes
already funded infrastructure
“Rain tax”: taxing nature Perception of fairness
Emissions trading
Utility distributes emission permits Tradable permits could increase efficiency,
exploiting the heterogeneity of costs
Can requirements for functioning emissions
market be met?
Check out work on this in Cincinnati, Ohio