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

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 prici...

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Main Authors: Ali Bouchrika, Wajdi Bardi
Format: Article
Language:English
Published: EconJournals 2016-09-01
Series:International Journal of Economics and Financial Issues
Subjects:
Online Access:https://dergipark.org.tr/tr/pub/ijefi/issue/32045/354690?publisher=http-www-cag-edu-tr-ilhan-ozturk
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author Ali Bouchrika
Wajdi Bardi
author_facet Ali Bouchrika
Wajdi Bardi
author_sort Ali Bouchrika
collection DOAJ
description 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 cointegration (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.
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spelling doaj.art-471bb0d4849847c0bc67b48fc8634dbe2023-02-15T16:12:11ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-09-0164159115981032The Management of Drinking Water and Long-term Perspective: Tunisia CaseAli BouchrikaWajdi BardiThis 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 cointegration (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.https://dergipark.org.tr/tr/pub/ijefi/issue/32045/354690?publisher=http-www-cag-edu-tr-ilhan-ozturkwater management pricing policy cointegration simultaneous equations
spellingShingle Ali Bouchrika
Wajdi Bardi
The Management of Drinking Water and Long-term Perspective: Tunisia Case
International Journal of Economics and Financial Issues
water management
pricing policy
cointegration
simultaneous equations
title The Management of Drinking Water and Long-term Perspective: Tunisia Case
title_full The Management of Drinking Water and Long-term Perspective: Tunisia Case
title_fullStr The Management of Drinking Water and Long-term Perspective: Tunisia Case
title_full_unstemmed The Management of Drinking Water and Long-term Perspective: Tunisia Case
title_short The Management of Drinking Water and Long-term Perspective: Tunisia Case
title_sort management of drinking water and long term perspective tunisia case
topic water management
pricing policy
cointegration
simultaneous equations
url https://dergipark.org.tr/tr/pub/ijefi/issue/32045/354690?publisher=http-www-cag-edu-tr-ilhan-ozturk
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