The Management of Drinking Water and Long-term Perspective: Tunisia Case

Ali Bouchrika and Wajdi Bardi
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Ali Bouchrika: Higher Institute of Management, University of Gabes, Tunisia,

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 4, 1591-1598

Abstract: This article analyzes the current situation of the management of drinking water in Tunisia, focusing on the constraints that the said management is subject. The empirical results show the absence of a long-term equilibrium between production capacity and consumption structure. In addition, the pricing policy is not an incentive tool to lower consumption. In fact, for domestic sector, water appears as a necessary good, while for both industry and tourism sectors declining consumption due respect to the fact that these two sectors have adopted other sources of supply substituting water of the National Water Distribution Utility. In addition to these three sectors, the hypothesis of co-integration (long-term equilibrium relationship) between the level of consumption, the price and the number of subscribers is rejected in most cases. To solve these problems, we propose a new pricing structure based primarily on the size of households to reduce waste

Keywords: Water Management; Pricing Policy; Co-integration; Simultaneous Equations (search for similar items in EconPapers)
JEL-codes: C22 Q21 Q25 (search for similar items in EconPapers)
Date: 2016
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