A Cost Recovery Accounting Approach to Water Management and Supply in the Kurdistan Regional Government of Iraq

Rukhsar Omer Khedher; Eahfen Mohammed Abdulrahman; Naz Nozad Saaduldeen

doi:10.25212/lfu.qzj.9.2.36

توێژەران

Rukhsar Omer Khedher Department of Accounting Technics, Erbil Technical administrative College, Erbil polytechnic university, Erbil, Kurdistan Region, Iraq.
Eahfen Mohammed Abdulrahman General Directorate of water & sewerage, Ministry of Municipality & Tourism, Accounting Technics, Erbil Technical administrative College, Erbil polytechnic university, Erbil, Kurdistan Region, Iraq.
Naz Nozad Saaduldeen Department Of Accounting Technics, Erbil Technical Administrative College, Erbil Polytechnic University, Erbil, Kurdistan Region, Iraq.

##semicolon##

https://doi.org/10.25212/lfu.qzj.9.2.36

##semicolon##

Cost accounting, cost recovery, sustainability, water management and supply.

پوختە

The study is a cost accounting approach to water management and distribution that seeks to examine the role of cost recovery play in reducing water management and supply problems. The study uses a systematic literature review together with document analysis to uncover and examine the Kurdistan Regional Government’s water management and supply issues, motivating and demotivating factors, and water revenue and costs trends. The findings revealed that the Kurdistan Regional Government has a low-cost recovery of 13% including electricity costs and of 37% excluding electricity costs, and this unacceptably calls for the enactment of appropriate local and social measures, and governmental policy adjustments. It was uncovered that sustainable water management and supply require effective incorporation of factors comprising cost recovery, costs, consumers’ willingness and ability to pay, water tariff and fee collection structures, financial management, operational technology, and appropriate institutions. This study’s contributions and implications shape and advance sustainability theories and cost accounting empirical studies to improve practical sustainable water management and supply practices used in the Middle East. Insights provided in this study contribute to shedding light on the key aspects governments must adopt to achieve sustainable water management and supply and contribute to the attainment of global sustainability initiatives.

##plugins.generic.usageStats.downloads##

##plugins.generic.usageStats.noStats##

سەرچاوەکان

Allaire, M., & Dinar, A. (2022). What drives water utility selection of pricing methods? Evidence from California. Water Resources Management, 36(1), 153-169.

Balcan, M. F., Sandholm , T., & Vitercik, E. (2018, June). A general theory of sample complexity for multi-item profit maximization. In Proceedings of the 2018 ACM Conference on Economics and Computation (pp. 173-174).

Bechocha, J, (2022). Erbil governor pledges to combat water shortages amid dry summer. Rudaw 04-06-2022. Retrieved from https://www.rudaw.net/english/kurdistan/040620222#:~:text=The%20Kurdistan%20Region%20and%20Iraq,'%20generators%2C%20according%20to%20Khoshnaw on 13 June 2022.

Berbel, J., & Expósito, A. (2020). The theory and practice of water pricing and cost recovery in the Water Framework Directive. Water Alternatives, 13(3), 659-673.

Bhojwani, S., Topolski, K., Mukherjee, R., Sengupta, D., & El-Halwagi, M. M. (2019). Technology review and data analysis for cost assessment of water treatment systems. Science of the Total Environment, 651, 2749-2761.

Borrego-Marín, M. M., Gutiérrez-Martín, C., & Berbel, J. (2016). Estimation of cost recovery ratio for water services based on the system of environmental-economic accounting for water. Water Resources Management, 30(2), 767-783.

Cairncross, S., & Mundial, B. (1992). Sanitation and water supply: practical lessons from the decade. World Bank, 9(63), 61-63

Chankong, V., & Haimes, Y. Y. (2008). Multiobjective decision making: theory and methodology. Courier Dover Publications.

Dervishi, V., Poschenrieder, W., Rötzer, T., Moser-Reischl, A., & Pretzsch, H. (2022). Effects of Climate and Drought on Stem Diameter Growth of Urban Tree Species. Forests, 13(5), 641.

Dinar, A., & Subramanian, A. (1998). Policy implications from water pricing experiences in various countries. Water Policy, 1(2), 239-250.

Dionigi, F. (2019). The Syrian refugee crisis in the Kurdish region of Iraq: Explaining the role of borders in situations of forced displacement. International Migration, 57(2), 10-31.

Donoso, G. (2017). Urban water pricing in Chile: Cost recovery, affordability, and water conservation. Wiley Interdisciplinary Reviews: Water, 4(2), e1194.

Dossou-Yovo, E. R., Devkota, K. P., Akpoti, K., Danvi, A., Duku, C., & Zwart, S. J. (2022). Thirty years of water management research for rice in sub-Saharan Africa: Achievement and perspectives. Field Crops Research, 283, 108548.

Faiq, A. J. (2021). The Effect of the Financial Crisis on Investment Projects Case Study: Kurdistan Region of Iraq. Kurdistan Journal of Applied Research, 105-116.

Giupponi, C., Jakeman, A. J., Karssenberg, D., & Hare, M. P. (2006). Sustainable management of water resources. Edward Elgar Publishing.

Hammond, W. M., Williams, A. P., Abatzoglou, J. T., Adams, H. D., Klein, T., López, R., ... & Allen, C. D. (2022). Global field observations of tree die-off reveal hotter-drought fingerprint for Earth’s forests. Nature communications, 13(1), 1-11.

Jangiz, K. (2021). Kurdistan Region’s population growth rate lower than Iraq: statistics office. Rudaw, 03-11-2021. Retrieved from https://www.rudaw.net/english/kurdistan/03112021 on 13 June 2022.

Katko, T. S. (1990). Cost recovery in water supply in developing countries. International Journal of Water Resources Development, 6(2), 86-94.

Langford, M. (2005). The United Nations concept of water as a human right: a new paradigm for old problems?. International Journal of Water Resources Development, 21(2), 273-282.

Namaki, A., Ghahremani, Z., Aelaei, M., Barzegar, T., & Ranjbar, M. E. (2022). The first report of drought tolerance assessment of Iranian asparagus. Gesunde Pflanzen, 74(1), 141-149.

Pérez-Arriaga, I. J., Rubio, F. J., Puerta, J. F., Arceluz, J., & Marín, J. (1996). Marginal pricing of transmission services: An analysis of cost recovery. In Electricity Transmission Pricing and Technology (pp. 59-76). Springer, Dordrecht.

Reynaud, A. (2016). Assessing the impact of full cost recovery of water services on European households. Water Resources and Economics, 14, 65-78.

Russo, T., Alfredo, K., & Fisher, J. (2014). Sustainable water management in urban, agricultural, and natural systems. Water, 6(12), 3934-3956.

Smith, L., & Hanson, S. (2003). Access to water for the urban poor in Cape Town: where equity meets cost recovery. Urban Studies, 40(8), 1517-1548.

Stavenhagen, M., Buurman, J., & Tortajada, C. (2018). Saving water in cities: Assessing policies for residential water demand management in four cities in Europe. Cities, 79, 187-195.

Sulaiman, S. Z., Hamad, K. O., & Andrea, S. R. (2022). Drivers and barriers towards sustainable water management in Erbil Kurdistan Region of Iraq. World Journal of Advanced Engineering Technology and Sciences, 6(1), 010–017.

UNICEF (2020). Water scarcity. Retrieved from https://www.unicef.org/wash/water-scarcity on 13 June 2022.

Wang, H., Xie, J., & Li, H. (2010). Water pricing with household surveys: A study of acceptability and willingness to pay in Chongqing, China. China Economic Review, 21(1), 136-149.

World Wildlife Fund (2022). Water scarcity. Retrieved from https://www.worldwildlife.org/threats/water-scarcity