A proposal for social pricing of water supply in Côte d'Ivoire

Daouda Diakité (), Aggey Semenov and Alban Thomas
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Daouda Diakité: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique, LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives

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Abstract: We consider the design of a nonlinear social tariff for residential water in Côte d'Ivoire, which is a case of a monopolistic private operator supplying a population of heterogeneous consumers. The proposed optimal tariff includes an initial "social" block with a low unit price, and higher consumption blocks with a monopoly pricing rule. This optimal nonlinear tariff is calibrated using econometric estimates of a panel-data residential water demand equation. Welfare changes associated with moving from the actual tariff to approximations of the optimal pricing system are computed under different tariff scenarios. We find that gains in consumer welfare would outweigh losses in producer surplus in a majority of Ivorian local communities.

Keywords: Residential Water Supply; Multi-block tariff; Residential water supply; Revue AERES; Social pricing; Keys Words : Multiblock tariff; Social Pricing (search for similar items in EconPapers)
Date: 2009
Note: View the original document on HAL open archive server: https://hal.univ-reunion.fr/hal-01243467v1
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Published in Journal of Development Economics, 2009, 88 (2), pp.258--268. ⟨10.1016/j.jdeveco.2008.03.003⟩

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Journal Article: A proposal for social pricing of water supply in Côte d'Ivoire (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01243467

DOI: 10.1016/j.jdeveco.2008.03.003

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