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A Concept for Water Resource Economics Value

Author(s): Nadjadji Anwar; Christiono Utomo

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Keywords: Water resources; Economics value; Availability of water; Price of water; Benefit of water

Abstract: An increase in the number of population and standard of living improve water resource needs, while the amounts of water resources have limitations that can lead to scarcity if allowed to happen without any prevention efforts. The existence of water resources management is needed to ensure the availability of water resources in the future. Water resources management should be done well in meeting the needs of society. Water is a huge resource that requires transportation costs, storage, and transfer of high cost for per unit volume. Water can be supplies as well as a stream. The nature of water is stochastic; meaning that the water is governed by physical processes those distribution possibilities (random). Good water resources allocation should be made so that the marginal net benefit (marginal cost benefit) is the same to all users. Marginal net benefit curve is the difference in the demand for water by the marginal cost curve. If the marginal net benefits are not evenly distributed, it will often rise to the transfer of water from utilizing the low net benefit to the use of which gives it’s higher. Economic concepts determine the distribution of water using the principle to limit the same value for every use (marginal value in use). This principle requires that water resources are allocated efficiently. The determination of marginal costs is very helpful in determining the price of water and in distinguishing between water user groups. Result of this research is obtained the service fee management of water resources that consists of cost of basic servives, cost of added value and factor of service quality. The service fee address to water power as well as municipal and industry water supplies.

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Year: 2016

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