Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74019
Authors: 
Briand, Anne
Year of Publication: 
2006
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 144.2006
Abstract: 
The model simulates on a 20-year horizon, a first phase of increase in the water resource availability taking into account the supply policies by the Senegalese government and a second phase with hydrologic deficits due to demand evolution (demographic growth). The results show that marginal cost water pricing (with a subsidy ensuring the survival of the water production sector) makes it possible in the long term to absorb the shock of the resource shortage, GDP, investment and welfare increase. Unemployment drops and the sectors of rain rice, market gardening and drinking water distribution grow. In contrast, the current policy of average cost pricing of water leads the long-term economy in a recession with an agricultural production decrease, a strong degradation of welfare and a rise of unemployment. This result questions the basic tariff (average cost) on which block water pricing is based in Senegal.
Subjects: 
Computable General Equilibrium Model
Dynamic
Imperfect Competition
Water
Pricing
Sub Saharan Africa
JEL: 
C68
O13
Document Type: 
Working Paper

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