Price for Domestic Water Supply: An Innovative Method Developed for the Tucano Aquifer in the State of Bahia, Brazil

Abstract

This chapter analyzes the pricing of bulk water extracted from the Tucano aquifer in the semiarid region of Bahia, Brazil, using the optimizing economic behavior agent model. The starting point is a set of demand and supply equations on groundwater that is pumped from the aquifer and used for domestic supply. The main goal of this chapter is to offer bulk water tariff levels through a methodology especially adequate to a region that, due to the scarcity of this natural resource as well as the level of poverty that characterizes the region, demands more and more application of mechanisms that contribute to the efficiency of its use, while ensuring adequate prices to be paid by poor families.