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

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  • Marie-Estelle Binet

    (CREM UMR CNRS 6211, University of Rennes 1, France)

  • Fabrizio Carlevaro

    (Département de sciences économiques (DESEC), Université de Genève)

  • Michel Paul

    (CEMOI, Université de la Réunion)

Abstract

In this paper, we estimate a residential water demand function for the eunion island, a French overseas territory which experiences, despite its tropical climate, a lot of stress on this resource. We develop speci cations of linear and non linear expenditure systems, taking into account the increasing block rate schedule current in the island. This modelling allows di¤erentiating within the total residential water consumption a component independent of prices and household income, called committed consumption, and a variable part which can be in‡uenced 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

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Bibliographic Info

Paper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 201334.

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Date of creation: Sep 2013
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Handle: RePEc:tut:cremwp:201334

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Keywords: Residential water demand; Increasing pricing; Expenditure systems; Survey data; Imputation of missing data; Instrumental variables;

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