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Controlling households' drilling fever in France: An economic modeling approach

  • Montginoul, Marielle
  • Rinaudo, Jean-Daniel
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    Using primary data collected at the national and local levels in France, this paper shows how water price increase, initially intended to generate environmental benefits through reducing water use, has produced economic incentives for households to drill their own garden boreholes. The paper first presents the results of a national survey which identifies the increasing number of garden boreholes as an issue of concern in a majority of the French counties. It then presents a microeconomic model which represents the households' decision to construct a borehole. The model is used to simulate the impact of various water pricing scenarios on tube well development and residential water demand at regional level. The paper ends with a discussion of the social impact of emerging independent supply strategies.

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    File URL: http://www.sciencedirect.com/science/article/pii/S092180091100351X
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    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 71 (2011)
    Issue (Month): C ()
    Pages: 140-150

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    Handle: RePEc:eee:ecolec:v:71:y:2011:i:c:p:140-150
    DOI: 10.1016/j.ecolecon.2011.08.018
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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    1. Andrew C. Worthington & Mark Hoffman, 2008. "An Empirical Survey Of Residential Water Demand Modelling," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 842-871, December.
    2. Céline Nauges & Alban Thomas, 2003. "Long-run Study of Residential Water Consumption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 25-43, September.
    3. Hrovatin, Nevenka & Bailey, Stephen J., 2001. "Implementing the European Commission's water pricing communication: cross-country perspectives," Utilities Policy, Elsevier, vol. 10(1), pages 13-24, March.
    4. Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
    5. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
    6. Aguilera-Klink, Federico & Perez-Moriana, Eduardo & Sanchez-Garcia, Juan, 2000. "The social construction of scarcity. The case of water in Tenerife (Canary Islands)," Ecological Economics, Elsevier, vol. 34(2), pages 233-245, August.
    7. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
    8. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, 03.
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