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Price and Income Elasticities of Residential Water Demand: A Meta-Analysis

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  • Jasper M. Dalhuisen
  • Raymond J. G. M. Florax
  • JHenri L. F. de Groot
  • Peter Nijkamp

Abstract

This article presents a meta-analysis of variations in price and income elasticities of residential water demand. Meta-analysis constitutes an adequate tool to synthesize research results by means of an analysis of the variation in empirical estimates reported in the literature. We link the variation in estimated elasticities to differences in theoretical microeconomic choice approaches, differences in spatial and temporal dynamics, as well as differences in research design of the underlying studies. The occurrence of increasing or decreasing block rate systems turns out to be important. With respect to price elasticities, the use of the discrete-continuous choice approach is relevant in explaining observed differences.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 79 (2003)
Issue (Month): 2 ()
Pages: 292-308

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Handle: RePEc:uwp:landec:v:79:y:2003:i:2:p:292-308

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Web page: http://le.uwpress.org/

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  1. Molly Espey, 1996. "Explaining the Variation in Elasticity Estimates of Gasoline Demand in the United States: A Meta-Analysis," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Number 3), pages 49-60.
  2. Michael L. Nieswiadomy & David J. Molina, 1989. "Comparing Residential Water Demand Estimates under Decreasing and Increasing Block Rates Using Household Data," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 65(3), pages 280-289.
  3. 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 591-98, November.
  4. Henry S. Foster, Jr. & Bruce R. Beattie, 1979. "Urban Residential Demand for Water in the United States," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 55(1), pages 43-58.
  5. Lars Gårn Hansen, 1996. "Water and Energy Price Impacts on Residential Water Demand in Copenhagen," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 72(1), pages 66-79.
  6. Smith, V Kerry & Huang, Ju-Chin, 1995. "Can Markets Value Air Quality? A Meta-analysis of Hedonic Property Value Models," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 103(1), pages 209-27, February.
  7. R. Bruce Billings & Donald E. Agthe, 1980. "Price Elasticities for Water: A Case of Increasing Block Rates," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 56(1), pages 73-84.
  8. MICHAEL Nieswiadomy & STEVEN L. Cobb, 1993. "Impact Of Pricing Structure Selectivity On Urban Water Demand," Contemporary Economic Policy, Western Economic Association International, Western Economic Association International, vol. 11(3), pages 101-113, 07.
  9. Williams, Martin, 1985. "Estimating urban residential demand for water under alternative price measures," Journal of Urban Economics, Elsevier, vol. 18(2), pages 213-225, September.
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