2014
DOI: 10.1093/ajae/aat083
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Cooperation against Theft: A Test of Incentives for Water Management in Tunisia

Abstract: Water theft carried out by manipulating water meters constrains volumetric pricing in semi‐arid regions. Cooperative management can reduce theft and improve incentives for efficient water use by inducing peer monitoring. Using a theoretical model, we show that theft is more likely when prices are high, punishments are weak, and cooperatives are large. We also show how cooperative membership and punishment levels are determined endogenously by constraints on monitoring. We test the model on data from Tunisia fo… Show more

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Cited by 9 publications
(7 citation statements)
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“…10 Since q cs ≥ q fi , then (C2) is only binding if (C1) is also binding, and so we can ignore (C2). 11 Which is set by the Ministry of Agriculture.…”
Section: First Schemementioning
confidence: 99%
See 1 more Smart Citation
“…10 Since q cs ≥ q fi , then (C2) is only binding if (C1) is also binding, and so we can ignore (C2). 11 Which is set by the Ministry of Agriculture.…”
Section: First Schemementioning
confidence: 99%
“…Water institutions can be effective at improving the resource allocation whenever they are well designed. Institutions influence individual behavior through incentives they give rise to, but institutions themselves evolve endogenously in part because of their incentive properties [11].…”
Section: Introductionmentioning
confidence: 99%
“…Evidence of the effects of these factors on utility revenues has been found for several places such as Kampala, Uganda (Mutikanga et al 2011), Tunisia (Mattoussi and Seabright, 2014), and Nairobi Furthermore, utilities could perform communal contributions, inform about the actions undertaken by the utilities to increase institutional trust and potentially modify consumer behavior in these realms.…”
Section: Behavioral Insights On Non-price Measures and Consumptionmentioning
confidence: 99%
“…Improving agricultural technology and increasing costs for monitoring have a positive impact in reducing water theft in Tunisia. (Mattoussi & Seabright, 2014).…”
Section: Factors That Cause Groundwater Taxation On Dewatering Are Not Optimal In Dki Jakarta Provincementioning
confidence: 99%