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Is all domestic water consumption sensitive to price control?

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  • Roberto Martinez-Espineira
  • Celine Nauges

Abstract

This paper presents a model of residential water demand based on the Stone-Geary utility function, which explicitly considers a threshold of water that is insensitive to price and a quantity that can adapt instantaneously to price changes. First, the threshold is assumed constant, being then allowed to vary according to past levels of consumption, a proxy for households' water-using equipment and habits. A measure of the depreciation rate of habits is derived and the effectiveness of price and non-price conservation measures are compared. The results provide useful policy recommendations for the studied case of Seville (Spain).

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 15 ()
Pages: 1697-1703

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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1697-1703

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Citations

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Cited by:
  1. S. Gaudin, 2006. "Effect of price information on residential water demand," Applied Economics, Taylor & Francis Journals, vol. 38(4), pages 383-393.
  2. Maria A. García-Valiñas & Roberto Martínez-Francisco & González-Gómez, 2010. "Water affordability: alternativem measurement and explanatory Factors in Andalusia," Centre for Water Economics, Environment and Policy Papers 1014, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
  3. David R. Bell & Ronald C. Griffin, 2011. "Urban Water Demand with Periodic Error Correction," Land Economics, University of Wisconsin Press, vol. 87(3), pages 528-544.
  4. Roberto Martinez Espineira, 2004. "An Estimation of Residential Water Demand Using Co-integration and Error Correction Techniques," Others 0410002, EconWPA.
  5. Dinusha Dharmaratna & Edwyna Harris, 2012. "Estimating Residential Water Demand Using the Stone-Geary Functional Form: The Case of Sri Lanka," Water Resources Management, Springer, vol. 26(8), pages 2283-2299, June.
  6. 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.
  7. Maria A. García‐Valiñas & Roberto Martínez‐Espiñeira & Francisco González‐Gómez, 2010. "Economics of Water Reform in the Murray-Darling Basin," Centre for Water Economics, Environment and Policy Papers 1005, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
  8. Maria de los Angeles Garcia Valinas, 2006. "Analysing rationing policies: drought and its effects on urban users' welfare (Analysing rationing policies during drought)," Applied Economics, Taylor & Francis Journals, vol. 38(8), pages 955-965.
  9. Rita Martins & Adelino Fortunato, 2005. "Residential water demand under block rates: a Portuguese case study," GEMF Working Papers 2005-09, GEMF - Faculdade de Economia, Universidade de Coimbra.
  10. Hanemann, W. Michael & Nauges, Celine, 2005. "Heterogeneous Responses to Water Conservation Programs: The Case of Residential Users in Los Angeles," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt1s43k3fd, Department of Agricultural & Resource Economics, UC Berkeley.
  11. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
  12. 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).
  13. Dexter V. L. Hunt & Christopher D. F. Rogers, 2014. "A Benchmarking System for Domestic Water Use," Sustainability, MDPI, Open Access Journal, vol. 6(5), pages 2993-3018, May.
  14. Thomas Fullerton & Roberto Tinajero & Jorge Mendoza Cota, 2007. "An Empirical Analysis of Tijuana Water Consumption," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(3), pages 357-369, September.
  15. Ming-Feng Hung & Bin-Tzong Chie, 2013. "Residential Water Use: Efficiency, Affordability, and Price Elasticity," Water Resources Management, Springer, vol. 27(1), pages 275-291, January.
  16. Massimiliano Mazzanti & Anna Montini, 2005. "The Determinants of Residential Water Demand Empirical Evidence for a Panel of Italian Municipalities," Working Papers 2005.27, Fondazione Eni Enrico Mattei.
  17. M. A. Garcia-Valinas & M. A. Muniz, 2007. "Is DEA useful in the regulation of water utilities? A dynamic efficiency evaluation (a dynamic efficiency evaluation of water utilities)," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 245-252.
  18. Dinusha Dharmaratna & Edwyna Harris, 2010. "Estimating Residential Water Demand using the Stone-Geary Functional Form: the Case of Sri Lanka," Development Research Unit Working Paper Series 46-10, Monash University, Department of Economics.
  19. Thomas Fullerton & Roberto Tinajero & Martha Barraza de Anda, 2006. "Short-Term Water Consumption Patterns in Ciudad Juárez, Mexico," Atlantic Economic Journal, International Atlantic Economic Society, vol. 34(4), pages 467-479, December.

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