Description
Calculate a supplied water-price scarcity wedge.
Environmental economic terms depend on price decomposition, attributable cost, deposit accounting and supplied counterfactuals. A signed difference can be negative, and a cost share does not establish willingness to pay. Local scenario arithmetic does not estimate scarcity, causal benefit, entitlement or an optimal environmental policy.
Calculate a supplied water-price scarcity wedge.
When to use this tool
Use Water Scarcity Price Wedge when you already have totalUnitPrice, nonScarcityUnitCost and need to calculate a supplied water-price scarcity wedge.
How to use the tool and how it works
- Enter totalUnitPrice, nonScarcityUnitCost. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read scarcityWedge. Use the output convention below.
Return totalUnitPrice-nonScarcityUnitCost using compatible currency and per-unit bases.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| totalUnitPrice | Total Unit Price | Required. Finite number. |
| nonScarcityUnitCost | Non Scarcity Unit Cost | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| scarcityWedge | Scarcity Wedge | Required. Finite number. |
{
"input": {
"totalUnitPrice": 4.5,
"nonScarcityUnitCost": 2
},
"output": {
"scarcityWedge": 2.5
}
}Limitations and assumptions
- Signed inputs and results are retained; no actual scarcity value, cost decomposition, optimal price or policy is estimated.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use the complete cost, valuation or causal study with explicit boundaries and verified source data for an economic conclusion. Reconcile deposit records and actual fee rules separately; a supplied price wedge or counterfactual difference is only one scenario term.
References
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