IDEAS home Printed from https://ideas.repec.org/a/spr/waterr/v24y2010i14p4033-4048.html
   My bibliography  Save this article

Urban Water Demand for Service and Industrial Use: The Case of Zaragoza

Author

Listed:
  • Fernando Arbués
  • Maria García-Valiñas
  • Inmaculada Villanúa

Abstract

Increased efforts to improve urban water management are focused on demand side policies, seeking to affect the behavior of users so that a “reasonable” use of water resources is reached. In this framework the accurate characterization of water demand play a major role in obtaining sufficient knowledge about this behavioral response to changes in price. In this paper we focus on the water demand of the services and industries connected to the public water network. To this end, we carry out an empirical estimation of urban water demand for service and industrial use in Zaragoza (Spain). The proposed model is a Koyck flow adjustment demand model, and a price specification, which is constructed as a function of the lagged average price, current marginal price and a price perception parameter. We use a dynamic panel data methodology to estimate the water demand function. As far as we are aware, this approach to service and industrial urban water demand is new in the literature. The analysis suggests that although price has a negative relationship with consumption, such an effect is reduced given that the price elasticity is lower than one in absolute value. Another relevant finding is that service and industrial urban users think that they pay a lower price than the actual price they pay. Copyright Springer Science+Business Media B.V. 2010

Suggested Citation

  • Fernando Arbués & Maria García-Valiñas & Inmaculada Villanúa, 2010. "Urban Water Demand for Service and Industrial Use: The Case of Zaragoza," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(14), pages 4033-4048, November.
    • Handle: RePEc:spr:waterr:v:24:y:2010:i:14:p:4033-4048
    DOI: 10.1007/s11269-010-9645-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11269-010-9645-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11269-010-9645-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marielle Montginoul, 2007. "Analysing the Diversity of Water Pricing Structures: The Case of France," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(5), pages 861-871, May.
    2. Diane Dupont & Steven Renzetti, 2001. "The Role of Water in Manufacturing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(4), pages 411-432, April.
    3. Arnaud Reynaud, 2003. "An Econometric Estimation of Industrial Water Demand in France," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(2), pages 213-232, June.
    4. Mahmut Firat & Mehmet Yurdusev & Mustafa Turan, 2009. "Evaluation of Artificial Neural Network Techniques for Municipal Water Consumption Modeling," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(4), pages 617-632, March.
    5. Xiuli Liu & Xikang Chen & Shouyang Wang, 2009. "Evaluating and Predicting Shadow Prices of Water Resources in China and Its Nine Major River Basins," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(8), pages 1467-1478, June.
    6. Frederick G. Babin & Cleve E. Willis & P. Geoffrey Allen, 1982. "Estimation of Substitution Possibilities between Water and Other Production Inputs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 148-151.
    7. Shin, Jeong-Shik, 1985. "Perception of Price When Price Information Is Costly: Evidence from Residential Electricity Demand," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 591-598, November.
    8. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
    9. M. Yurdusev & A. Kumanlıoğlu, 2008. "Survey-Based Estimation of Domestic Water Saving Potential in the Case of Manisa City," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 22(3), pages 291-305, March.
    10. Leonie Pearson & Anthea Coggan & Wendy Proctor & Timothy Smith, 2010. "A Sustainable Decision Support Framework for Urban Water Management," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(2), pages 363-376, January.
    11. 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.
    12. José Féres & Arnaud Reynaud, 2005. "Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil," Land Economics, University of Wisconsin Press, vol. 81(3).
    13. Steven Renzetti, 1993. "Examining the Differences in Self- and Publicly Supplied Firms' Water Demands," Land Economics, University of Wisconsin Press, vol. 69(2), pages 181-188.
    14. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    15. Steven Renzetti, 1992. "Estimating the Structure of Industrial Water Demands: The Case of Canadian Manufacturing," Land Economics, University of Wisconsin Press, vol. 68(4), pages 396-404.
    16. Michael L. Nieswiadomy & David J. Molina, 1991. "A Note on Price Perception in Water Demand Models," Land Economics, University of Wisconsin Press, vol. 67(3), pages 352-359.
    17. Intriligator, Michael D., 1983. "Economic and econometric models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 3, pages 181-221, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. María A. García-Valiñas, 2018. "Spain," Post-Print hal-03191536, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vallés-Giménez, Jaime & Zárate-Marco , Anabel, 2013. "Environmental taxation and industrial water use in Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 25, pages 133-162.
    2. 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 m," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 237-258, Agosto.
    3. Kumar, Surender, 2004. "Analysing industrial water demand in India: An input distance function approach," Working Papers 04/12, National Institute of Public Finance and Policy.
    4. Jos順鲥s & Arnaud Reynaud & Alban Thomas, 2012. "Water reuse in Brazilian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1417-1427, April.
    5. repec:npf:wpaper:12 is not listed on IDEAS
    6. repec:ind:nipfwp:12 is not listed on IDEAS
    7. Tobarra-González, Miguel Ángel, 2018. "The Value of Water in the Manufacture Industry and its Implications for Water Demand Policies. The Case of Chile /Valor del agua en la industria manufacturera de Chile y sus implicaciones para las pol," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 945-960, Septiembr.
    8. José Féres & Arnaud Reynaud, 2005. "Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil," Land Economics, University of Wisconsin Press, vol. 81(3).
    9. Strzepek, Kenneth M. & Juana, James S. & Kirsten, Johann F., 2006. "Marginal Productivity Analysis of Global Inter-sectoral Water Demand," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25748, International Association of Agricultural Economists.
    10. Linz, Teresa & Tsegai, Daniel W., 2009. "Industrial Water Demand analysis in the Middle Olifants sub-basin of South Africa: The case of Mining," Discussion Papers 49927, University of Bonn, Center for Development Research (ZEF).
    11. Randy A. Becker, 2016. "Water Use and Conservation in Manufacturing: Evidence from U.S. Microdata," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(12), pages 4185-4200, September.
    12. Fernando Arbues & Inmaculada Villanua, 2006. "Potential for Pricing Policies in Water Resource Management: Estimation of Urban Residential Water Demand in Zaragoza, Spain," Urban Studies, Urban Studies Journal Limited, vol. 43(13), pages 2421-2442, December.
    13. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
    14. Dilek Uz & Steven Buck, 2020. "Comparing Water Use Forecasting Model Selection Criteria: The Case of Commercial, Institutional, and Industrial Sector in Southern California," Sustainability, MDPI, vol. 12(10), pages 1-21, May.
    15. Joel Bruneau & Steven Renzetti & Michel Villeneuve, 2010. "Manufacturing Firms’ Demand for Water Recirculation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(4), pages 515-530, December.
    16. Karabulut, Armağan & Egoh, Benis N. & Lanzanova, Denis & Grizzetti, Bruna & Bidoglio, Giovanni & Pagliero, Liliana & Bouraoui, Fayçal & Aloe, Alberto & Reynaud, Arnaud & Maes, Joachim & Vandecasteel, 2016. "Mapping water provisioning services to support the ecosystem–water–food–energy nexus in the Danube river basin," Ecosystem Services, Elsevier, vol. 17(C), pages 278-292.
    17. Barberán Ortí, Ramón & Inmaculada, Villanúa Martín & Arbués Gracia, Fernando, 2000. "Water Price Impact On Residential Water Demand In Zaragoza City. A Dynamic Panel Data Approach," ERSA conference papers ersa00p167, European Regional Science Association.
    18. Jason F. L. Koopman & Onno Kuik & Richard S. J. Tol & Roy Brouwer, 2017. "The potential of water markets to allocate water between industry, agriculture, and public water utilities as an adaptation mechanism to climate change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(2), pages 325-347, February.
    19. Randy A. Becker, 2016. "Water Use and Conservation in Manufacturing: Evidence from U.S. Microdata," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(12), pages 4185-4200, September.
    20. Guillermo Ignacio Acuña & Cristián Echeverría & Alex Godoy & Felipe Vásquez, 2020. "The role of climate variability in convergence of residential water consumption across Chilean localities," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(1), pages 89-108, January.
    21. Steven Renzetti & Joel Brueau & Michel Villeneuve, 2009. "Self-selection bias and manufacturing firms' demand for water recirculation," Working Papers 0902, Brock University, Department of Economics, revised Feb 2009.
    22. Nicholas Rivers & Steven Groves, 2013. "The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(3), pages 419-445, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:waterr:v:24:y:2010:i:14:p:4033-4048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.