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How much does water consumption drop when each household takes charge of its own consumption? The case of the city of Seville

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  • Jos頉. Castillo-Manzano
  • Lourdes Lopez-Valpuesta
  • Manuel Marchena-G
  • Diego J. Pedregal

Abstract

Making individuals take charge of their own domestic water consumption is one of the measures used to reduce the growing demand for this resource and to achieve sustainable consumption compatible with the goal of equity. The use of individual meters instead of communal meters and fixing tariffs by inhabitant rather than by household are two measures aimed at achieving these objectives. This article assesses the measures put in place in the Seville metropolitan area during the last 20 years with an unobserved component model set up in a state-space framework estimated using maximum likelihood. Water consumption elasticity to individual meters has changed from --0.307 to --1.317 with the introduction of per inhabitant tariffs, which demonstrates that there are water-saving synergies when the two measures are implemented together. The reductions in water consumption achieved with these measures are also longer lasting than the changes in consumption habits during the frequent droughts in Seville.

Suggested Citation

  • Jos頉. Castillo-Manzano & Lourdes Lopez-Valpuesta & Manuel Marchena-G & Diego J. Pedregal, 2013. "How much does water consumption drop when each household takes charge of its own consumption? The case of the city of Seville," Applied Economics, Taylor & Francis Journals, vol. 45(32), pages 4465-4473, November.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4465-4473
    DOI: 10.1080/00036846.2013.788785
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    References listed on IDEAS

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    1. Valeria Bernardo & Xavier Fageda & Montserrat Termes, 2015. "Do droughts have long-term effects on water consumption? Evidence from the urban area of Barcelona," Applied Economics, Taylor & Francis Journals, vol. 47(48), pages 5131-5146, October.
    2. Germà Bel & Francisco González-Gómez & Andrés J Picazo-Tadeo, 2015. "Does market concentration affect prices in the urban water industry?," Environment and Planning C, , vol. 33(6), pages 1546-1565, December.
    3. Castillo-Manzano, José I. & Pedregal, Diego J. & Pozo-Barajas, Rafael, 2016. "An econometric evaluation of the management of large-scale transport infrastructure in Spain during the great recession: Lessons for infrastructure bubbles," Economic Modelling, Elsevier, vol. 53(C), pages 302-313.

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