This paper covers several common goals of user charges: good governance, financial sustainability, distributive justice, economic efficiency, and fair pricing.
|Title||Beyond cost recovery : setting user charges for financial, economic, and social goals|
|Year of Publication||2004|
|Authors||Dole, D., Bartlett, I.|
|Secondary Title||Technical note /ERD-ADB|
|Pagination||38 p. : 3 tab.|
|Publisher||Asian Development Bank|
|Place Published||Manila, Philippines|
|Keywords||economic aspects, financial management, sdiman, social aspects, sustainability, tariffs, water supply charges|
This paper covers several common goals of user charges: good governance, financial sustainability, distributive justice, economic efficiency, and fair pricing. It shows that these goals can be pursued jointly by following three steps: (i) set usage charges for distributive justice and economic efficiency; (ii) if additional revenue is required for financial sustainability, set fixed charges for sustainability and fairness; and (iii) increase or adjust charges at a rate consistent with good governance. The resulting user charge depends on circumstances, but is always simple and familiar. The approach suits whatever goals the public chooses for setting user charges, and is not particular to the five considered in this paper.
|Notes||45 ref. Includes glossary|