Modelling seasonality in residential water demand: the case of Tunisia

Ben Zaied Younes () and Marie-Estelle Binet ()

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Abstract: This article proposes to model seasonal patterns of residential water demand using the techniques of seasonal integration and cointegration. The methodology is applied to quarterly aggregate time series data for Tunisia (1980-2007), applying the same increasing, multi-step pricing scheme in the whole country. First, a seasonal cointegration analysis demonstrates the relevance of a pricing policy that increases the size of the lower consumption block in summer. Second, the non-seasonal cointegration analysis reveals a relatively high price elasticity for the highest consumption block. Therefore, we also propose to increase the tariff progressivity to promote water savings. This modified pricing scheme will help to achieve goals of environmental protection and social equity.

Keywords: quaterly data; residential water demand; seasonal integration and cointegration; increasing block tariffs (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

Published in Applied Economics, 2015, 47 (19), pp.1983-1996. ⟨10.1080/00036846.2014.1002896⟩

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Working Paper: Modelling seasonality in residential water demand: the case of Tunisia (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01102007

DOI: 10.1080/00036846.2014.1002896

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