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Residential Water Consumption: A Cross Country Analysis

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  • R. Quentin Grafton

    ()
    (Crawford School of Public Policy, The Australian National University, Australia)

  • Tom Kompas

    ()
    (Crawford School of Public Policy, The Australian National University, Australia)

  • Hang To

    ()
    (Crawford School of Public Policy, The Australian National University, Australia)

  • Michael Ward

    ()
    (Crawford School of Public Policy, The Australian National University, Australia)

Abstract

Survey data from 10 OECD countries are used to model household water demand. Statistically significant results include: (1) an inelastic average price response is estimated for every country; (2) households not charged volumetrically consume more water than households that are; (3) household size, residence size, higher education, full-time employment and household income increase water consumption; (4) attitudinal characteristics do not have a statistically significant effect on consumption but increase the probability of undertaking water saving behaviors; and (5) promotion of water saving behaviors would be more effective if households faced a volumetric water charge.

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Bibliographic Info

Paper provided by Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University in its series Environmental Economics Research Hub Research Reports with number 0923.

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Date of creation: Mar 2009
Date of revision: Aug 2009
Handle: RePEc:een:eenhrr:0923

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  1. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
  2. Russell Davidson & James G. MacKinnon, 1981. "Tests for Model Specification in the Presence of Alternative Hypotheses: Some Further Results," Working Papers 430, Queen's University, Department of Economics.
  3. CĂ©line Nauges & Alban Thomas, 2000. "Privately Operated Water Utilities, Municipal Price Negotiation, and Estimation of Residential Water Demand: The Case of France," Land Economics, University of Wisconsin Press, vol. 76(1), pages 68-85.
  4. Olmstead, Sheila M. & Michael Hanemann, W. & Stavins, Robert N., 2007. "Water demand under alternative price structures," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 181-198, September.
  5. 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, vol. 65(3), pages 280-289.
  6. Henry S. Foster, Jr. & Bruce R. Beattie, 1981. "On the Specification of Price in Studies of Consumer Demand under Block Price Scheduling," Land Economics, University of Wisconsin Press, vol. 57(4), pages 624-629.
  7. Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
  8. Hendry, David F., 1995. "Dynamic Econometrics," OUP Catalogue, Oxford University Press, number 9780198283164, Octomber.
  9. Renwick, Mary E. & Green, Richard D., 2000. "Do Residential Water Demand Side Management Policies Measure Up? An Analysis of Eight California Water Agencies," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 37-55, July.
  10. Mary E. Renwick & Sandra O. Archibald, 1998. "Demand Side Management Policies for Residential Water Use: Who Bears the Conservation Burden?," Land Economics, University of Wisconsin Press, vol. 74(3), pages 343-359.
  11. R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages S57-S65, 09.
  12. Ida Ferrara, 2008. "Residential Water Use," OECD Journal: General Papers, OECD Publishing, vol. 2008(2), pages 153-180.
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Cited by:
  1. Emma Aisbett & Ralf Steinhauser, 2011. "Does anybody give a dam? The importance of public awareness for urban water conservation during drought," Environmental Economics Research Hub Research Reports 10100, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.

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