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How to Manage the Naturel Resources Pricing in the Sustainability Context: Application to Drinking Water

Author

Listed:
  • Bouchrika Ali

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

  • Issaoui Fakhri

    (College of Business)

  • Hamid Abdelkader Bachouche

    (Higher Institute of Management of Gabes, University of Gabes
    College of Business)

Abstract

The goal of this study is to develop a social pricing model for the consumption of a good such drinking water in order to finally uphold the ideal of consumer equality. A deficit results from the first-tier monopoly's price; furthermore, second-class pricing may have detrimental effects on fairness. The concern for equity does, in fact, necessitate the inclusion of social value in the price model. The empirical research demonstrates that the Greater Tunis region's households face an appreciation for the physical quality of this good when consuming drinking water, Social pricing is therefore primarily based on a customer's willingness to pay (WTP) in accordance with their preferences.

Suggested Citation

  • Bouchrika Ali & Issaoui Fakhri & Hamid Abdelkader Bachouche, 2024. "How to Manage the Naturel Resources Pricing in the Sustainability Context: Application to Drinking Water," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 38(11), pages 4307-4321, September.
    • Handle: RePEc:spr:waterr:v:38:y:2024:i:11:d:10.1007_s11269-024-03866-0
    DOI: 10.1007/s11269-024-03866-0
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    References listed on IDEAS

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    1. Simon Porcher, 2014. "Efficiency and equity in two-part tariffs: the case of residential water rates," Applied Economics, Taylor & Francis Journals, vol. 46(5), pages 539-555, February.
    2. Bouchrika Ali & Chokri Terzi & Khalil Mhadhbi & Issaoui Fakhri, 2019. "Theoretical Analysis of the Relationship Between Monopoly's Optimal Tariffs and Consumer Utility," International Journal of Sustainable Economies Management (IJSEM), IGI Global, vol. 8(1), pages 39-51, January.
    3. Whittington, Dale & Lauria, Donald T. & Mu, Xinming, 1991. "A study of water vending and willingness to pay for water in Onitsha, Nigeria," World Development, Elsevier, vol. 19(2-3), pages 179-198.
    4. Whittington, Dale & Briscoe, John & Mu, Xinming & Barron, William, 1990. "Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 293-311, January.
    5. Shin, Jeong-Shik, 1985. "Perception of Price When Price Information Is Costly: Evidence from Residential Electricity Demand," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 591-598, November.
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    Keywords

    Pricing; Equity; WTP; Quality; Logit model;
    All these keywords.

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