Marielle Montginoul

Simulating the Impact of Pricing Policies on Residential Water Demand: A Southern France Case Study

The case study conducted in this paper looks at residential water pricing from three different points of view. It first describes existing urban water-pricing practices in Southern France, emphasizing that pricing is not yet being used as a tool for providing economic incentives to save water. It then looks at the observed impact of pricing on water consumption, through an econometric analysis of a cross-sectional data set. The analysis suggests that demand, with an estimated price elasticity of −0.2, is not yet very responsive to price variation. A regional water model (300 municipalities) is then developed and used to simulate the potential impact of various water-pricing scenarios on aggregate water demand, aggregate water sales revenue, and consumer surpluses. The results illustrate the trade-offs that have to be made between the search for environmental effectiveness, cost recovery, and equity when implementing complex water-pricing structures such as block rates or seasonal water pricing.

Participatory analysis for adaptation to climate change in Mediterranean agricultural systems: possible choices in process design

There is an increasing call for local measures to adapt to climate change, based on foresight analyses in collaboration with actors. However, such analyses involve many challenges, particularly because the actors concerned may not consider climate change to be an urgent concern. This paper examines the methodological choices made by three research teams in the design and implementation of participatory foresight analyses to explore agricultural and water management options for adaptation to climate change. Case studies were conducted in coastal areas of France, Morocco, and Portugal where the groundwater is intensively used for irrigation, the aquifers are at risk or are currently overexploited, and a serious agricultural crisis is underway. When designing the participatory processes, the researchers had to address four main issues: whether to avoid or prepare dialogue between actors whose relations may be limited or tense; how to select participants and get them involved; how to facilitate discussion of issues that the actors may not initially consider to be of great concern; and finally, how to design and use scenarios. In each case, most of the invited actors responded and met to discuss and evaluate a series of scenarios. Strategies were discussed at different levels, from farming practices to aquifer management. It was shown that such participatory analyses can be implemented in situations which may initially appear to be unfavourable. This was made possible by the flexibility in the methodological choices, in particular the possibility of framing the climate change issue in a broader agenda for discussion with the actors.

The Development of Private Bore-Wells as Independent Water Supplies: Challenges for Water Utilities in France and Australia

In developed countries, a number of factors are leading a growing number of households to drill private boreholes as independent water supplies. This chapter describes this phenomenon based on two case studies conducted in Southern France and Western Australia. It shows that, while the development of private wells was encouraged by the authorities in Perth, it is a major source of environmental, public health, economic and social concern for French water utilities. Households motivations to develop independent supply are then investigated. We finaly discuss how water utilities need to adapt their management practices (setting tariffs, demand forecasting and resource protection) to take into account this phenomenon.

Controlling Groundwater Exploitation Through Economic Instruments: Current Practices, Challenges and Innovative Approaches

Groundwater can be considered as a common-pool resource, is often overexploited and, as a result, there are growing management pressures. This chapter starts with a broad presentation of the range of economic instruments that can be used for groundwater management, considering current practices and innovative approaches inspired from the literature on Common Pool Resources management. It then goes on with a detailed presentation of groundwater allocation policies implemented in France, the High Plains aquifer in the USA, and Chile. The chapter concludes with a discussion of social and political difficulties associated with implementing economic instruments for groundwater management.

Water Pricing in France: Toward More Incentives to Conserve Water

With an historical overview of the legislative and regulatory framework of water pricing in France, this chapter first describes how the focus of pricing policy progressively shifted from budget balancing to water conservation then to social protection. The next part focuses on pricing practices in the urban sector. Price levels and the evolution of tariff structures are analyzed using surveys and case studies results. The fourth section focuses on water pricing in the agricultural sector at different scales: large public irrigation schemes, smaller water user associations, and individual irrigation systems. The evolution of water abstraction fees collected by river-basin authorities is also analyzed, and we present how these fees can be modulated depending on the degree of collective management of agricultural water resources. To conclude, we discuss the efficiency of water pricing in urban and irrigation sectors and highlight some limits to take into account several uses.

How to Integrate Social Objectives into Water Pricing

The social dimension should be addressed in the sustainability of water services provision, but it is less well studied than the economic and environmental ones. The debate between pros and cons of water privatization led the Organisation for Economic Co-operation and Development (OECD) to publish a seminal paper on social issues in water pricing, back in 2003. Relying on this document and other literature review, we successively present various solutions to support “water-poor” people in the payment of their charges: reducing bills for targeted populations (rebates, increasing blocks), supporting the income of targeted populations, reducing bills for all customers, and reintroducing taxation as a source of income. A general outcome is that social tariff design entails administrative costs that may offset the benefits it is supposed to generate. Lastly, we advocate the development of new software to assess the redistributive effects of ongoing tariffs, and tariff changes between categories of residents and with the water utilities’ capacity to invest.