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Household size and residential water demand: an empirical approach

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  • Arbues, Fernando
  • Villanu´a, Inmaculada
  • Barberan, Ramon
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    Abstract

    The effectiveness of pricing policies depends on the price elasticity of consumption. It is well documented that residential demand for water is influenced by heterogeneity associated with differences in the size of the household and socioeconomic characteristics. In this paper, we focus on household size. Our initial hypothesis is that users’ sensitivity to changes in price is different depending on the number of household members. To this end, we carry out an empirical estimation of urban water demand in Zaragoza (Spain) distinguishing between households with different sizes using data at the individual level. As far as we are aware, this approach to urban residential water demand is new in the literature. The analysis suggests that all households are sensitive to prices regardless of size. A more relevant finding is that small households are more sensitive to price changes.

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 54 (2010)
    Issue (Month): 1 (March)
    Pages:

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    Handle: RePEc:ags:aareaj:161996

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    Related research

    Keywords: demand analysis; household size; price elasticity; residential water demand; Consumer/Household Economics; Demand and Price Analysis;

    References

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    5. Narayan, Paresh Kumar & Smyth, Russell, 2005. "The residential demand for electricity in Australia: an application of the bounds testing approach to cointegration," Energy Policy, Elsevier, vol. 33(4), pages 467-474, March.
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    9. Yoo, Seung-Hoon & Lee, Joo Suk & Kwak, Seung-Jun, 2007. "Estimation of residential electricity demand function in Seoul by correction for sample selection bias," Energy Policy, Elsevier, vol. 35(11), pages 5702-5707, November.
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    13. Blundell, Richard & Bond, Stephen & Devereux, Michael & Schiantarelli, Fabio, 1992. "Investment and Tobin's Q: Evidence from company panel data," Journal of Econometrics, Elsevier, vol. 51(1-2), pages 233-257.
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    16. Espey, James A. & Espey, Molly, 2004. "Turning on the Lights: A Meta-Analysis of Residential Electricity Demand Elasticities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), April.
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    Cited by:
    1. Alison Browne & Will Medd & Ben Anderson, 2013. "Developing Novel Approaches to Tracking Domestic Water Demand Under Uncertainty—A Reflection on the “Up Scaling” of Social Science Approaches in the United Kingdom," Water Resources Management, Springer, vol. 27(4), pages 1013-1035, March.
    2. Joanne Parker & Robert Wilby, 2013. "Quantifying Household Water Demand: A Review of Theory and Practice in the UK," Water Resources Management, Springer, vol. 27(4), pages 981-1011, March.

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