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Estimation of Water Demand in Developing Countries: An Overview

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  • Céline Nauges
  • Dale Whittington

Abstract

A better understanding of household water use in developing countries is necessary to manage and expand water systems more effectively. Several meta-analyzes have examined the determinants of household water demand in industrialized countries, but little effort has been made to synthesize the growing body of literature evaluating household water demand in developing countries. This article reviews what is known and what is missing from that literature thus far. Analysis of demand for water in developing countries is complicated by abundant evidence that, contrary to what is observed in most developed countries, households in developing countries have access to, and may use more than one of several types of, water sources. The authors describe the different modeling strategies that researchers have adopted to estimate water demand in developing countries and discuss issues related to data collection. The findings from the literature on the main determinants of water demand in these countries suggest that, despite heterogeneity in the places and time periods studied, most estimates of own-price elasticity of water from private connections are in the range from - 0.3 to - 0.6, close to what is usually reported for industrialized countries. The empirical findings on decisions relating to household water sources are much less robust and should be a high priority for future research. Copyright 2010, Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal The World Bank Research Observer.

Volume (Year): 25 (2010)
Issue (Month): 2 (August)
Pages: 263-294

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Handle: RePEc:oup:wbrobs:v:25:y:2010:i:2:p:263-294

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Cited by:
  1. Fernando Borraz & Nicolás Gonzalez Pampillón & Marcelo Olarreaga, 2011. "Water nationalization: network access, quality, and health outcomes," Documentos de Trabajo (working papers) 1811, Department of Economics - dECON.
  2. Johanna Choumert & Jesper STAGE & Claudine UWERA, 2014. "Access to water as a determinant of rental values: A hedonic analysis in Rwanda," Working Papers halshs-00939271, HAL.
  3. Vásquez, William F., 2011. "Household preferences and governance of water services: A hedonic analysis from rural Guatemala," IFPRI discussion papers 1152, International Food Policy Research Institute (IFPRI).
  4. Borraz, Fernando & Pampillon, Nicolas Gonzalez & Olarreaga, Marcelo, 2013. "Water nationalization and service quality," Policy Research Working Paper Series 6318, The World Bank.
  5. Barde, Julia Alexa & Lehmann, Paul, 2013. "Distributional effects of water tariff reforms: An empirical study for Lima, Peru," UFZ Discussion Papers 14/2013, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
  6. Marie-Estelle Binet & Younes Ben Zaïd, 2011. "A Seasonal Integration and Cointegration Analysis of Residential Water Demand in Tunisia," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201122, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  7. Ben Zaied Younes, 2013. "A long-run analysis of residential water consumption," Economics Bulletin, AccessEcon, vol. 33(1), pages 536-544.
  8. Sidibé, Amadou, 2010. "Demand for soil, water and forest conservation in Burkina Faso," Department of Forest Economics publications 2345, Swedish University of Agricultural Sciences, Department of forest economics.
  9. Worthington, Andrew C., 2010. "Commercial and Industrial Water Demand Estimation: Theoretical and Methodological Guidelines for Applied Economics Research/Estimación de la demanda de agua comercial e industrial: pautas teóricas y," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 28, pages 237-258, Agosto.
  10. Henrique Monteiro, 2010. "Residential Water Demand in Portugal: checking for efficiency-based justifications for increasing block tariffs," Working Papers Series 1 ercwp0110, ISCTE-IUL, Business Research Unit (BRU-IUL).

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