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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
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Fabrizio Carlevaro: Département de sciences économiques (DESEC), Université de Genève
Michel Paul: CEMOI, Université de la Réunion

Economics Working Paper Archive (University of Rennes & University of Caen) from Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS

Abstract: In this paper, we estimate a residential water demand function for the Reunion island, a French overseas territory which experiences, despite its tropical climate, a lot of stress on this resource. We develop specifications of linear and non linear expenditure systems, taking into account the increasing block rate schedule current in the island. This modelling allows differentiating within the total residential water consumption a component independent of prices and household income, called committed consumption, and a variable part which can be influenced by a relevant water pricing policy. Using survey data collected on a sample of households, our empirical results reveal the importance of committed consumption and of outdoor uses of water. The expected drops in water consumption generated by socially acceptable rate changes appear therefore limited and it is advisable to complement pricing policies with other measures, such as information campaigns focusing the outdoor uses of water

Keywords: Residential water demand; Increasing pricing; Expenditure systems; Survey data; Imputation of missing data; Instrumental variables (search for similar items in EconPapers)
JEL-codes: C51 D12 Q25 (search for similar items in EconPapers)
Date: 2013-09
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: La demande d’eau potable à La Réunion: estimation à partir de données d’enquête (2016) Downloads
Working Paper: La demande d'eau potable à La Réunion. Estimation à partir de données d'enquête (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:tut:cremwp:201334

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