Controlling Households' Drilling Fever in France: an economic modeling approach
Résumé
This paper describes an unintended negative environmental impact of water price increase in the drinking water sector. Using primary data collected at the national and local levels in France, it shows how water price increase, initially intended to generate environmental benefits through reducing water use, has produced economic incentives for households to drill their own garden boreholes. The development of such boreholes is now causing major pollution risk for groundwater in urban areas. It also represents a major source of management problem for public water utilities. The paper first presents the results of a national survey which identifies the increasing number of garden boreholes as an issue of concern in a majority of the French counties. The motivations of households installing a tube well are then investigated though individual interviews in a local case study. The factors determining the decision to invest in a tube well are identified and a micro-economic model representing the decision process is developed. This model is used to assess the probability of development of private boreholes on a regional scale, under different economic scenarios.
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