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Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates differ

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Author Info
Jasper M. Dalhuisen () (Vrije Universiteit Amsterdam)
Raymond J.G.M. Florax () (Vrije Universiteit Amsterdam)
Henri L.F.M. de Groot () (Vrije Universiteit Amsterdam)
Peter Nijkamp () (Vrije Universiteit Amsterdam)

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Abstract

This paper presents a meta-analysis of variations in price and income elasticities of residential water demand. Information on the determinants of consumer demand is of pivotal importance for the efficiency and efficacy of public and private policy-making. It is also crucial for effective water demand management. We focus on the application of statistical methods to synthesize research results on price and income elasticities of residential water demand report in the literature. These techniques are generally referred to as meta-analysis. This type of analysis constitutes an adequate tool for explaining why empirical estimates of the price and income elasticity of residential water demand vary to such considerable extents. The set of explanatory factors used in the meta-analysis includes variables derived from microeconomic choice theory and moderator variables reflecting differences in spatial and temporal dynamics, research design, and statistical quality of the estimates of previously published studies.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 01-057/3.

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Date of creation: 13 Jun 2001
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Handle: RePEc:dgr:uvatin:20010057

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Related research
Keywords: D11; D12; H31; Q25; Q28;

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  1. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2005. "A Meta-Analysis of Beta-Convergence: The Legendary Two-Percent," Tinbergen Institute Discussion Papers 05-001/3, Tinbergen Institute. [Downloadable!]
  2. Martinez-Espineira, Roberto, 2005. "An Estimation of Residential Water Demand Using Co-Integration and Error Correction Techniques," MPRA Paper 615, University Library of Munich, Germany, revised Jan 2006. [Downloadable!]
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  3. Roberto Martínez-Espiñeira & Céline Nauges, 2004. "Is all domestic water consumption sensitive to price control?," Applied Economics, Taylor and Francis Journals, vol. 36(15), pages 1697-1703, August. [Downloadable!] (restricted)
  4. Dalhuisen, Jasper M. & Groot, Henri L.F. & Nijkamp, Peter, 2001. "Economic policy instruments and sustainable water use," Serie Research Memoranda 0004, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  5. Raymond J.G.M. Florax & Henri L.F. de Groot & Ruud A. de Mooij, 2002. "Meta-analysis: A Tool for Upgrading Inputs of Macroeconomic Policy Models," Tinbergen Institute Discussion Papers 02-041/3, Tinbergen Institute. [Downloadable!]
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