Comparative water pricing analysis: Duality formal-informal in a CGE model for Senegal

Anne Briand (1)

1 LASTA - Laboratoire d'Analyse des Sociétés, Transformations et Adaptations

In this paper we build a static CGE model for Senegal that allows for comparative analyses of different water pricing schemes. The model defines five sectors (drinking water production, drinking water distribution, the agricultural sector, the industry and services). The originality of this model consists on defining the duality formal-informal in the drinking water distribution sector. The main raisons are firstly that the current water prices are different between both segments and secondly, that we focus on substitution possibilities of households regarding their choice of water distributor. The objective is to estimate the production and employment impacts of water policy pricing on the development of both formal and informal water distribution segments. The aim is to determine the policy which makes water service affordable for all households and to analyse the effects on the income distribution for three consumers categories (rural, Dakar and other urban areas). JEL classification: C68, O17, Q25

Mots clés: Water Pricing; Computable General Equilibrium Model; Informal; Africa

Domaines: Économie et finance quantitative [q-fin]

Anne Briand. Comparative water pricing analysis: Duality formal-informal in a CGE model for Senegal. Input-Output and General Equilibrium: Data, Modeling, and PolicyAnalysis, 2004, Brussels, Belgium. ⟨hal-02430439⟩