UpDate - Vol. 11, No. 6, Page 4
October 10, 1991
Fellow applies academic training to public sector

     Laurence Seidman, professor of economics and the latest
recipient of the University's Public Service Fellowship, released
a report over the summer on water conservation that he developed in
conjunction with the Water Resources Agency for New Castle County
(WRA).
     The Public Service Fellowship program allows a University
faculty member to work with a public agency on a specific topic or
problem proposed by the agency.
     According to Bernard Dworsky, administrator of WRA, the
program is "an excellent service of the University to public
agencies. It makes available very good expertise to public agencies
on particular public policy areas."
     Seidman said that "the public sector gets a different point of
view by bringing in academic training. It's a different perspective
and hopefully will bring better public policy to benefit citizens
of Delaware and New Castle County, in particular."
     Seidman spent the 1991 spring semester evaluating water
conservation programs used around the country to determine their
relevance to New Castle County. He worked closely with Dworsky on
the project.
     "I enjoyed very much working with him," Seidman said. "He was
very supportive and cooperative. Although we didn't necessarily
approach the problem in identical ways, we respected the different
vantage points. It was a pleasure working with him."
     Dworsky is "very appreciative to the University for the
service of Seidman and the time and effort he spent."
     Seidman's report inspects various approaches to water
conservation, including educational programs, plumbing fixture
retrofit devices and conservation regulations. However, the main
focus of the report is on pricing structures.
     "The aim of public policy toward private and public water
utilities should be to achieve 'competitive pricing,'" the report
says.
     By competitive pricing, Seidman means basing water prices on
the concept of supply and demand to achieve "optimal conservation."
He explained that water should be treated as a competitive industry
and prices should be adjusted accordingly.
     "This is the single most important thing that we can do. If
the summer is dry and hot, prices should go up. This helps to
induce consumers to conserve," he said.
     Similarly, he said, "when water is more abundant, water prices
should go down.
     "It is important that people be charged more for the more
water they use. There shouldn't be a large fixed price. There
should be a low fixed price and the rest of the revenue should be
based on what people use," he added.
     He emphasized that his proposals "are virtually what any
professor of economics would recommend. It is a mainstream point of
view in academics."
     He said he is hopeful that public service committees of
Delaware will decide to consider seriously implementing competitive
pricing.
     Seidman believes his work on the project will directly benefit
his students. "It was a great opportunity for me which I think will
add to my classes. I can give more real-world experiences and
examples," he said.
                                        - Denise Arroyo