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

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  • Montginoul, Marielle
  • Rinaudo, Jean-Daniel

Abstract

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.

Suggested Citation

  • Montginoul, Marielle & Rinaudo, Jean-Daniel, 2011. "Controlling households' drilling fever in France: An economic modeling approach," Ecological Economics, Elsevier, vol. 71(C), pages 140-150.
  • Handle: RePEc:eee:ecolec:v:71:y:2011:i:c:p:140-150
    DOI: 10.1016/j.ecolecon.2011.08.018
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
    5. 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.
    6. 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.
    7. 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.
    8. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
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    Citations

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    Cited by:

    1. Jean-Daniel Rinaudo, 2015. "Long-Term Water Demand Forecasting," Post-Print hal-01183853, HAL.
    2. Jean-Daniel Rinaudo, 2015. "Long-Term Water Demand Forecasting," Post-Print hal-01290178, HAL.
    3. Katherine A. Daniell & Jean-Daniel Rinaudo & Noel Chan & Céline Nauges & Quentin Grafton, 2015. "Understanding and Managing Urban Water in Transition," Post-Print hal-01183846, HAL.
    4. Qingsong Wang & Xueliang Yuan & Jian Zuo & Ruimin Mu & Lixin Zhou & Mingxia Sun, 2014. "Dynamics of Sewage Charge Policies, Environmental Protection Industry and Polluting Enterprises—A Case Study in China," Sustainability, MDPI, Open Access Journal, vol. 6(8), pages 1-19, July.
    5. Jean-Daniel Rinaudo & Noémie Neverre & Marielle Montginoul, 2012. "Simulating the Impact of Pricing Policies on Residential Water Demand: A Southern France Case Study," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(7), pages 2057-2068, May.

    More about this item

    Keywords

    Groundwater; Household decision modeling; Tube well; Water pricing; Water demand;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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