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Tradable water saving certificates to improve urban water use efficiency: an ex-ante evaluation in a French case study

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  • Jean-Daniel Rinaudo
  • Javier Calatrava
  • Marine Vernier De Byans

Abstract

type="main" xml:id="ajar12132-abs-0001"> This paper proposes a system of tradable Water Saving Certificates to improve the efficiency of water allocation between Drinking Water Utilities at river basin level. A market institutional set-up, inspired from recent policy developments in the energy sector, is proposed. An original analytical price-endogenous model is developed to simulate trade intensity, equilibrium price and efficiency gains in this urban water market. The economic model is implemented in a French case study using mathematical programming. It is used for conducting an ex-ante evaluation of trade possibilities and efficiency gains, considering different spatial restrictions aimed at controlling environmental externalities. Our modelling exercise provides evidence of the benefits of the proposed Water Saving Certificate scheme.

Suggested Citation

  • Jean-Daniel Rinaudo & Javier Calatrava & Marine Vernier De Byans, 2016. "Tradable water saving certificates to improve urban water use efficiency: an ex-ante evaluation in a French case study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(3), pages 422-441, July.
  • Handle: RePEc:bla:ajarec:v:60:y:2016:i:3:p:422-441
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    File URL: http://hdl.handle.net/10.1111/ajar.2016.60.issue-3
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    Cited by:

    1. Till Proeger & Lukas Meub & Kilian Bizer, 2018. "Laboratory Experiments of Tradable Development Rights: A Synthesis of Different Treatments," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    2. Epiphane Assouan & Tina Rambonilaza & Bénédicte Rulleau, 2018. "Renewal of water-related infrastructure and user\'s contribution: a few benchmarks," Cahiers du GREThA (2007-2019) 2018-19, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

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