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A study on the improvement of water price normalization policy in Korea

Ko, Gijun

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Abstract

In 2014, the Ministry of Interior and Safety (MOIS) promoted a water price normalization policy in order to solve problem of low cost recovery ratio, which is a chronic problem of water management in Korea. However, MOIS's policy to increase water price has failed eventually. The reason why MOIS's policy failed was due to the fact that, first, it did not take into account the various conditions of each local water service and applied uniform criteria in setting goals and promotion periods. Second, MOIS used cost covering ratio and water production cost as criteria to classify policy targets, but this classification criteria had some problems.

This paper suggests policy target regrouping, goal level differentiation, and implementation period differentiation as an policy alternative to increase water price effectively. The research results show that factors related to economies of scale, such as length of water pipe, are significant factors to consider when classifying policy targets. In addition, a 75% of revenue water ratio was suggested as a factor to consider when deciding the timeline for raising water prices.

Advisor(s)
Lee, Jongyearn
Department
KDI School, Master of Public Policy
Issue Date
2020
Publisher
KDI School
Description
Thesis(Master) --KDI School:Master of Public Mangement,2020.
Keywords
Water-supply; Water resources development
Contents
Ⅰ. Introduction

Ⅱ. Water Service in Korea

Ⅲ. Water Price Normalization Policy in Korea

Ⅳ. Literature Review

Ⅴ. Policy Direction for Water Price Normalization

Ⅵ. Data Analysis and Policy Implications

Ⅶ. Conclusion
Pages
33 p.
URI
https://archives.kdischool.ac.kr/handle/11125/34623
Type
Capstone
Language
eng
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