Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.jdeveco.2008.03.003
Title: A proposal for social pricing of water supply in Côte d'Ivoire
Authors: Diakité, D.
Semenov, A. 
Thomas, A.
Keywords: C33
I38
Multi-block tariff
O13
Q25
Residential water supply
Social pricing
Issue Date: Mar-2009
Citation: Diakité, D., Semenov, A., Thomas, A. (2009-03). A proposal for social pricing of water supply in Côte d'Ivoire. Journal of Development Economics 88 (2) : 258-268. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jdeveco.2008.03.003
Abstract: We consider the design of a nonlinear social tariff for residential water in Côte d'Ivoire, which is a case of a monopolistic private operator supplying a population of heterogeneous consumers. The proposed optimal tariff includes an initial "social" block with a low unit price, and higher consumption blocks with a monopoly pricing rule. This optimal nonlinear tariff is calibrated using econometric estimates of a panel-data residential water demand equation. Welfare changes associated with moving from the actual tariff to approximations of the optimal pricing system are computed under different tariff scenarios. We find that gains in consumer welfare would outweigh losses in producer surplus in a majority of Ivorian local communities. © 2008 Elsevier B.V. All rights reserved.
Source Title: Journal of Development Economics
URI: http://scholarbank.nus.edu.sg/handle/10635/129341
ISSN: 03043878
DOI: 10.1016/j.jdeveco.2008.03.003
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