{"title":"The generalised translog cost function to estimate tariffs for potable water: The case of Tunisia","authors":"tawfik ben amor","doi":"10.53936/afjare.2022.17(4).23","DOIUrl":null,"url":null,"abstract":"The present study aims to estimate the marginal cost of potable water supply and analyse the implications for more efficient, equitable and income-adequate tap water tariffs in Tunisia. Furthermore, this article aims to develop a new pricing model for potable water. Pricing by the Tunisian water utility focuses on setting water prices to cover average costs, often using designs that increase clogging rates. This results in a large volume of potable water being wasted. To facilitate the efficient estimation of pricing models, we attempt to introduce generalised translog (GT) cost specifications for multiple products including Box-Cox transformations. It turns out that the marginal social cost of providing a cubic meter of water must consist of two components: volumetric charges, at €0.048/m3 , and connection water charges, of €0.055/km.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":" ","pages":""},"PeriodicalIF":0.4000,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"African Journal of Agricultural and Resource Economics-AFJARE","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.53936/afjare.2022.17(4).23","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
The present study aims to estimate the marginal cost of potable water supply and analyse the implications for more efficient, equitable and income-adequate tap water tariffs in Tunisia. Furthermore, this article aims to develop a new pricing model for potable water. Pricing by the Tunisian water utility focuses on setting water prices to cover average costs, often using designs that increase clogging rates. This results in a large volume of potable water being wasted. To facilitate the efficient estimation of pricing models, we attempt to introduce generalised translog (GT) cost specifications for multiple products including Box-Cox transformations. It turns out that the marginal social cost of providing a cubic meter of water must consist of two components: volumetric charges, at €0.048/m3 , and connection water charges, of €0.055/km.
期刊介绍:
The African Journal of Agricultural and Resource Economics (AfJARE)/Journal Africain d’Economie Agricole et des Ressources (JAEAR) is a publication of the African Association of Agricultural Economists (AAAE). The journal publishes original research about how African agriculture interacts with local and global economic systems and policy regimes in its impacts upon people. The scope of the journal covers the roles of markets, technology, policy, institutions and the natural environment in shaping the lives of well being of Africans engaged in agricultural activities. The journal strives to nurture and enhance the capacity of African professionals to conduct and publish scientific research and provides a venue for communicating and disseminating their findings. Multi-disciplinary, problem-oriented articles are encouraged. Submissions may deal with teaching, research extension, consulting, advising, entrepreneurship and administration. The Chief Editors and Editorial Board, under the general direction of the AAAE President, Executive Committee and Council are charged with implementing Journal policy to serve members of AAAE. The main section of the journal publishes technical research articles while a small section is devoted to publishing brief notes with important policy content and book reviews. The journal is a quarterly publication.