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Estimating Water Demand under Increasing-Block Tariffs Using Aggregate Data and Proportions of Users per Block

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Author Info
R. Martínez-Espiñeira

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Abstract

The price specification suggested by Nordin (1976) for theanalysis of demand under block tariffs is applied to estimatewater demand functions using aggregate data from the Northwest ofSpain. The traditional way of using Nordin's specification whenonly aggregate data are available (using values of marginal priceand difference faced by the average user) is compared with thetheoretically correct one. The latter uses the average marginalprice and the average difference, these averages being weighted bythe proportion of users per block. The availability of data on theproportion of users per block permits also the explicit modellingof the choice of block. The results show that, in the sampleanalyzed, the values of price elasticity under the traditionalspecification and the more innovative one are not significantlydifferent. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/A:1025693823235
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 26 (2003)
Issue (Month): 1 (September)
Pages: 5-23
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Handle: RePEc:kap:enreec:v:26:y:2003:i:1:p:5-23

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: water demand; water pricing; block pricing;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Breusch, T S, 1978. "Testing for Autocorrelation in Dynamic Linear Models," Australian Economic Papers, Blackwell Publishing, vol. 17(31), pages 334-55, December.
  2. G. Burtless & J. A. Hausman, 1977. "The Effect of Taxation on Labor Supply: Evaluating the Gary Negative Income Tax Experiment," Working papers 211, Massachusetts Institute of Technology (MIT), Department of Economics.
    Other versions:
  3. Godfrey, Leslie G, 1978. "Testing against General Autoregressive and Moving Average Error Models When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1293-1301, November. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Xayavong, Vilaphonh & Burton, Michael & White, Ben, 2007. "Estimating Urban Residential Water-Demand with Increasing Block Prices: The Case of Perth, Western Australia," Working Papers 7061, University of Western Australia, School of Agricultural and Resource Economics. [Downloadable!]
  2. Xayavong, Vilaphonh & Burton, Michael & White, Ben, 2008. "Estimating Urban Residential Water-Demand With Increasing Block Prices: The Case of Perth, Western Australia," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6010, Australian Agricultural and Resource Economics Society. [Downloadable!]
  3. DIAKITE Daouda & SEMENOV Aggey & THOMAS Alban, 2006. "Social Pricing and Water Provision in Côte d'Ivoire," Working Papers 06.14.207, LERNA, University of Toulouse. [Downloadable!]
  4. Mark Hoffman & Andrew Worthington & Helen Higgs, 2005. "Modelling residential water demand with fixed volumetric charging in a large urban municipality: The case of Brisbane, Australia," School of Economics and Finance Discussion Papers and Working Papers Series 196, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
  5. Kavezeri-Karuaihe, Selma T. & Wandschneider, Philip & Yoder, Jonathan, 2005. "Perceived Water Prices and Estimated Water Demand in the Residential Sector of Windhoek, Namibia. An Analysis of the Different Water Market Segments," 2005 Annual Meeting, July 6-8, 2005, San Francisco, California 36289, Western Agricultural Economics Association. [Downloadable!]
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