The generalised translog cost function to estimate tariffs for potable water: The case of Tunisia

The present study aims to estimate the marginal cost of potable water supply and analyse implications for more efficient, equitable income-adequate tap tariffs in Tunisia. Furthermore, this article develop a new pricing model water. Pricing by Tunisian utility focuses on setting prices cover average costs, often using designs that increase clogging rates. This results large volume being wasted. To facilitate efficient estimation models, we attempt introduce generalised translog (GT) specifications multiple products including Box-Cox transformations. It turns out social providing cubic meter must consist two components: volumetric charges, at €0.048/m3 , connection €0.055/km.