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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 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

Suggested Citation

  • Marie-Estelle Binet & Fabrizio Carlevaro & Michel Paul, 2013. "La demande d'eau potable à La Réunion : Estimation à partir de données d'enquête," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201334, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  • 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;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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