les cahiers du mecas
Volume 22, Numéro 1, Pages 443-455
2026-06-02

Hydro-economic Assessment Of Irrigation Water Pricing Reform Under Extreme Water Stress: Econometric Evidence And Policy Simulations From Algeria (1990–2022)



Authors : Touidjeni Zinelaabidine .

Abstract

This study examines irrigation water pricing reform as a demand-management instrument under extreme water stress in Algeria (1990–2022). It develops a hydro-economic framework combining econometric modelling and elasticity-based simulations using FAO AQUASTAT and World Bank data. Results show that population growth, economic activity, and irrigation expansion are key drivers of freshwater withdrawals, while precipitation moderates demand. Simulations based on a price elasticity of −0.25 indicate that tariff increases reduce agricultural water use, with a 10% increase lowering withdrawals by about 2.5% and a 50% increase by nearly 13%. However, water stress remains high, reflecting structural scarcity. Pricing reform requires complementary policies.

Keywords

Hydro-economic modelling ; Irrigation water pricing ; Water demand management ; Water stress ; Algeria

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