2026-09-21T02:22:34Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/645602026-06-05T23:46:55Zcom_1721.1_7582com_1721.1_7581col_1721.1_131023
Jennifer Davis.
Bartlett, Sarah J. (Sarah Jo), 1977-
Massachusetts Institute of Technology. Dept. of Urban Studies and Planning.
Massachusetts Institute of Technology. Department of Urban Studies and Planning
n-us-ma
2011-06-20T15:50:50Z
2011-06-20T15:50:50Z
2003
2003
http://hdl.handle.net/1721.1/64560
52971451
Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2003.
Includes bibliographical references (p. 62-65).
The experience of Boston, Massachusetts in recovering costs for their nineteenth century public water supply system, the Cochituate Water Works, is analyzed in light of current policy advice coming from international development banks. Lenders like the World Bank currently advise full-cost pricing for urban water services, and that utilities in developing countries use pricing to manage demand. This thesis asks, how closely did a city in an industrialized country, in its developing stage, follow the policy advice proffered today? The annual reports of Boston's water department were reviewed to determine the extent that Boston recovered costs from users, and the extent that Boston used pricing to manage demand. Archival research revealed that while water rates covered annual operating and maintenance expenses, payment of the interest on construction costs was generally made by new loans or bond issues. The City did not meter households and was loathe to manage demand through price-mechanisms, preferring to augment capacity in the face of constrained water supplies. Archival research also revealed the motivations behind Boston's policies of subsidization. The City initially offered low water rates and subsidized household connections because officials wanted to take advantage of economies of scale, believing that inducing universal subscription would move the system more quickly to financial self-sufficiency. Low water rates also resulted from a perceived high elasticity of demand for water services. The City raised rates during the first twenty years of water system operation in efforts to make the water department financially self-sufficient, but failed. A lack of political and public support for high prices made the City adopt policies of greater subsidization and rate reductions in later years.
by Sarah J. Bartlett.
M.C.P.
72 p.
eng
Massachusetts Institute of Technology
M.I.T. theses are protected by
copyright. They may be viewed from this source for any purpose, but
reproduction or distribution in any format is prohibited without written
permission. See provided URL for inquiries about permission.
http://dspace.mit.edu/handle/1721.1/7582
Urban Studies and Planning.
Who pays for water? : cost recovery and user fees in Boston's public water infrastructure, 1849-1895
Thesis
application/pdf
false
Publication
unknown
unknown
<Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="c89c6b7f-4749-4871-89bf-ff625beb241b">
<Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type>
<Language>eng</Language>
<Title>Who pays for water? : cost recovery and user fees in Boston's public water infrastructure, 1849-1895</Title>
<PublishedIn>
<Publication>
</Publication>
</PublishedIn>
<PublicationDate>2003</PublicationDate>
<Authors>
<Author>
<DisplayName>Bartlett, Sarah J. (Sarah Jo), 1977-</DisplayName>
<Affiliation>
<OrgUnit>
</OrgUnit>
</Affiliation>
</Author>
</Authors>
<Editors>
</Editors>
<Publishers>
<Publisher>
<DisplayName>Massachusetts Institute of Technology</DisplayName>
<OrgUnit />
</Publisher>
</Publishers>
<License>http://dspace.mit.edu/handle/1721.1/7582</License>
<Keyword>Urban Studies and Planning.</Keyword>
<Abstract>The experience of Boston, Massachusetts in recovering costs for their nineteenth century public water supply system, the Cochituate Water Works, is analyzed in light of current policy advice coming from international development banks. Lenders like the World Bank currently advise full-cost pricing for urban water services, and that utilities in developing countries use pricing to manage demand. This thesis asks, how closely did a city in an industrialized country, in its developing stage, follow the policy advice proffered today? The annual reports of Boston's water department were reviewed to determine the extent that Boston recovered costs from users, and the extent that Boston used pricing to manage demand. Archival research revealed that while water rates covered annual operating and maintenance expenses, payment of the interest on construction costs was generally made by new loans or bond issues. The City did not meter households and was loathe to manage demand through price-mechanisms, preferring to augment capacity in the face of constrained water supplies. Archival research also revealed the motivations behind Boston's policies of subsidization. The City initially offered low water rates and subsidized household connections because officials wanted to take advantage of economies of scale, believing that inducing universal subscription would move the system more quickly to financial self-sufficiency. Low water rates also resulted from a perceived high elasticity of demand for water services. The City raised rates during the first twenty years of water system operation in efforts to make the water department financially self-sufficient, but failed. A lack of political and public support for high prices made the City adopt policies of greater subsidization and rate reductions in later years.</Abstract>
<Access xmlns="http://purl.org/coar/access_right"
>
</Access>
</Publication>