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The Management of Drinking Water and Long-term Perspective: Tunisia Case

Author

Listed:
  • Ali Bouchrika

    (Higher Institute of Management, University of Gabes, Tunisia,)

  • Wajdi Bardi

    (Higher Institute of Management, University of Gabes, Tunisia.)

Abstract

This article analyzes the current situation of the management of drinking water in Tunisia, focusing on the constraints that the said management is subject. The empirical results show the absence of a long-term equilibrium between production capacity and consumption structure. In addition, the pricing policy is not an incentive tool to lower consumption. In fact, for domestic sector, water appears as a necessary good, while for both industry and tourism sectors declining consumption due respect to the fact that these two sectors have adopted other sources of supply substituting water of the National Water Distribution Utility. In addition to these three sectors, the hypothesis of co-integration (long-term equilibrium relationship) between the level of consumption, the price and the number of subscribers is rejected in most cases. To solve these problems, we propose a new pricing structure based primarily on the size of households to reduce waste

Suggested Citation

  • Ali Bouchrika & Wajdi Bardi, 2016. "The Management of Drinking Water and Long-term Perspective: Tunisia Case," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1591-1598.
    • Handle: RePEc:eco:journ1:2016-04-40
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Water Management; Pricing Policy; Co-integration; Simultaneous Equations;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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