Abstract
Groundwater is a major alternative water source used to cover the deficit of water supplied by Kathmandu Upatyaka Khanepani Limited (KUKL), the authority responsible for water supply inside Kathmandu Valley. The groundwater price relative to that of KUKL affects priority of usage, and hence, groundwater resources sustainability. Therefore, taxation or subsidies on water sources become necessary based on their implication on environment. In this study, we evaluate volumetric water price, including initial investment, operation and maintenance (O&M) cost for different water sources, and compare it with the water price of KUKL, Kathmandu. The results show that shallow groundwater is cheaper than KUKL’s water. For groundwater sustainability, taxation on shallow groundwater seems necessary. For the recent water use of 97 LPCD (liters per capita per day) the taxation requirement is Nepalese Rupee (NRs.) 320/month (0.35% of total expenditure) if the initial investment for well construction and O&M cost are considered, and NRs. 626 (0.7% of total expenditure) if only O&M cost is considered. On the other hand, rainwater harvesting and recharging, the measures to cope with groundwater exploitation, might need 40% to 50% subsidy for their initial investment.
Highlights
The Dublin Water Principles [1] claim water as an economic good and emphasize the importance of water pricing for the sustainability of water services
Specific sources for specific water use were determined through the percentage of people using the source for that specific water use purpose, where 70% was used as the threshold value for that the source for that specific water use purpose, where 70% was used as the threshold value for that purpose
The average water supplied by Kathmandu Upatyaka Khanepani Limited (KUKL) pre and post MWSP is approximately 109 million liters a day (MLD) and MLD, respectively
Summary
The Dublin Water Principles [1] claim water as an economic good and emphasize the importance of water pricing for the sustainability of water services. The environmental aspects of water market are seldom considered while calculating water price. Rogers et al [3] emphasize that to ensure environmental sustainability, the cost of environmental externalities needs to be included while calculating water price. Water market functions differently when consumers have several choices including informal competitors such as groundwater and vendors. Pricing policies need to consider these informal competitors as well. Kilimani et al [4] assert that the water pricing policy will be sustainable only if pricing and regulatory institutions function properly. Consumer behavior plays an important role while addressing
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