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La demande d’eau potable à La Réunion: estimation à partir de données d’enquête

Marie-Estelle Binet (), Fabrizio Carlevaro and Michel Paul

Revue d'économie politique, 2016, vol. 126, issue 1, 155-191

Abstract: Using data from a household survey carried out in the French overseas territory of Reunion, we specify and estimate, in this paper, a micro econometric demand function for potable water with the purpose of identifying and quantifying the impact of the determinants of household consumption of this resource which is presently under heavy operating stress. We model this demand by means of a generalization of the linear expenditure system allowing to differentiate within the residential water consumption a captive component independent of prices and household income, and a variable component as a function of prices and household income, which can be influenced by a relevant water pricing policy. Our estimates carried out by taking into account possible selection bias reveal the importance of captive consumption resulting both from household basic needs and from the outdoor uses of water. Therefore, it is advisable to complement pricing policies with other measures, such as information campaigns focusing on the outdoor uses of water.

Keywords: Demand for potable water; Increasing block rate pricing; Expenditure systems; Survey data; Imputation of missing data; Instrumental variables (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: La demande d'eau potable à La Réunion. Estimation à partir de données d'enquête (2006)
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