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Modelling seasonality in residential water demand: the case of Tunisia

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  • Younes Ben Zaied
  • Marie Estelle Binet

Abstract

This article proposes to model seasonal patterns of residential water demand using the techniques of seasonal integration and cointegration. The methodology is applied to quarterly aggregate time series data for Tunisia (1980-2007), applying the same increasing, multi-step pricing scheme in the whole country. First, a seasonal cointegration analysis demonstrates the relevance of a pricing policy that increases the size of the lower consumption block in summer. Second, the nonseasonal cointegration analysis reveals a relatively high price elasticity for the highest consumption block. Therefore, we also propose to increase the tariff progressivity to promote water savings. This modified pricing scheme will help to achieve goals of environmental protection and social equity.

Suggested Citation

  • Younes Ben Zaied & Marie Estelle Binet, 2015. "Modelling seasonality in residential water demand: the case of Tunisia," Applied Economics, Taylor & Francis Journals, vol. 47(19), pages 1983-1996, April.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1983-1996
    DOI: 10.1080/00036846.2014.1002896
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    Cited by:

    1. Younes Ben Zaied & Nidhaleddine Ben Cheikh & Pascal Nguyen, 2017. "Modeling nonlinear water demand : The case of Tunisia," Economics Bulletin, AccessEcon, vol. 37(2), pages 637-644.
    2. Favre, Marine & Montginoul, Marielle, 2018. "Water pricing in Tunisia: Can an original rate structure achieve multiple objectives?," Utilities Policy, Elsevier, vol. 55(C), pages 209-223.
    3. Michael O'Donnell & Robert P. Berrens, 2018. "Understanding Falling Municipal Water Demand in a Small City Dependent on the Declining Ogallala Aquifer: Case Study of Clovis, New Mexico," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-40, October.

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