Concentration of water use permit and volume-based fees in Ceara, Brazil

This research aims to identify the level of concentration of the volume granted (the so-called permit) by grantee sectors in the State of Ceara, Brazil, as well as to simulate both the impact of the permit fees, and to conjecture about the permit concentration trend due to fee increase. The Gini index is calculated for all users with granted volume; next, fees are applied to the volume granted, observing the impact of charging to users; and lastly, the migration of irrigation users are conjectured based on the volume granted. The results indicate high Gini index for the supply, industry and irrigation; high impact on irrigation charge and low impacts on supply and industry; and concentration trend in irrigation due to elevated charges when the permit fee is applied. The authors conclude that the joint charging (consumption and permit) is relevant, as long as an effort is made by the basin committee to increase acceptance of a substantial fee increase.