IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v99y2023i326p436-453.html
   My bibliography  Save this article

Urban Residential Water Demand and Household Size: A Robust Meta‐Regression Analysis

Author

Listed:
  • Alemken Jegnie
  • James Fogarty
  • Sayed Iftekhar

Abstract

We present the results of a meta‐analysis of household‐size water demand elasticity. The analysis is based on 75 primary studies. As there is evidence of publication bias, publication bias–corrected estimates are reported. For indoor water use, we find that in countries with gross domestic product (GDP) per capita below $10,000, the household‐size elasticity is approximately 0.4–0.5, and in countries with GDP per capita above $10,000, it is approximately 0.5–0.6. For outdoor water use, we find that there is no increase in water use as household size increases, at low incomes (GDP less than $5000 per capita), but the effect becomes positive at higher incomes. In countries with a GDP per capita between $5000 and $15,000, the household‐size outdoor water use elasticity is approximately 0.1, and in countries with a GDP per capita above $15,000, it is approximately 0.2. The positive household‐size elasticity implies that the cost of meeting basic water needs, per person, increases with household size in countries that use increasing block pricing for water. The use of a single volumetric price, equal to marginal cost, combined with a fixed charge, would lessen this effect and also improve system efficiency.

Suggested Citation

  • Alemken Jegnie & James Fogarty & Sayed Iftekhar, 2023. "Urban Residential Water Demand and Household Size: A Robust Meta‐Regression Analysis," The Economic Record, The Economic Society of Australia, vol. 99(326), pages 436-453, September.
  • Handle: RePEc:bla:ecorec:v:99:y:2023:i:326:p:436-453
    DOI: 10.1111/1475-4932.12751
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-4932.12751
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1475-4932.12751?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pinto, Francisco Silva & Marques, Rui Cuhna, 2015. "Tariff recommendations: A Panacea for the Portuguese water sector?," Utilities Policy, Elsevier, vol. 34(C), pages 36-44.
    2. 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.
    3. Tripathi, Sabyasachi, 2020. "Does economic development reduce household size? Evidence from India," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 982-999.
    4. Andrew C. Worthington & Mark Hoffman, 2008. "An Empirical Survey Of Residential Water Demand Modelling," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 842-871, December.
    5. Sibly, Hugh & Tooth, Richard, 2014. "The consequences of using increasing block tariffs to price urban water," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), April.
    6. Martin S. Feldstein, 1972. "Equity and Efficiency in Public Sector Pricing: The Optimal Two-Part Tariff," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(2), pages 175-187.
    7. R Quentin Grafton & Long Chu & Paul Wyrwoll, 2020. "The paradox of water pricing: dichotomies, dilemmas, and decisions," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(1), pages 86-107.
    8. Martins, Rita & Antunes, Micaela & Fortunato, Adelino, 2020. "Regulatory changes to Portugal's social tariffs: Carrying water in a sieve?," Utilities Policy, Elsevier, vol. 64(C).
    9. Nauges, Celine & Whittington, Dale, 2017. "Evaluating the Performance of Alternative Municipal Water Tariff Designs: Quantifying the Tradeoffs between Equity, Economic Efficiency, and Cost Recovery," World Development, Elsevier, vol. 91(C), pages 125-143.
    10. Tomas Havranek & Zuzana Irsova & Tomas Vlach, 2018. "Measuring the Income Elasticity of Water Demand: The Importance of Publication and Endogeneity Biases," Land Economics, University of Wisconsin Press, vol. 94(2), pages 259-283.
    11. Fuente, David, 2019. "The design and evaluation of water tariffs: A systematic review," Utilities Policy, Elsevier, vol. 61(C).
    12. Whittington, Dale, 1992. "Possible Adverse Effects of Increasing Block Water Tariffs in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 75-87, October.
    13. Donald E. Agthe & R. Bruce Billings, 1987. "Equity, Price Elasticity, and Household Income Under Increasing Block Rates for Water," American Journal of Economics and Sociology, Wiley Blackwell, vol. 46(3), pages 273-286, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. María Ángeles García-Valiñas & Sara Suárez-Fernández, 2022. "Are Economic Tools Useful to Manage Residential Water Demand? A Review of Old Issues and Emerging Topics," Post-Print hal-04067487, HAL.
    2. Lucia Cecchi & Enrico Conti & Letizia Ravagli, 2022. "The determinants of domestic water demand and the equity of tariffs: Empirical evidence from an Italian municipality," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2022(3), pages 373-395.
    3. Lehmann, Paul, 2011. "Making water affordable to all: A typology and evaluation of options for urban water pricing," UFZ Discussion Papers 10/2011, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    4. Fuente, David, 2019. "The design and evaluation of water tariffs: A systematic review," Utilities Policy, Elsevier, vol. 61(C).
    5. Favre, Marine & Montginoul, Marielle, 2018. "Water pricing in Tunisia: Can an original rate structure achieve multiple objectives?," Utilities Policy, Elsevier, vol. 55(C), pages 209-223.
    6. Joachim Schleich & Thomas Hillenbrand, 2019. "Residential water demand responds asymmetrically to rising and falling prices," Applied Economics, Taylor & Francis Journals, vol. 51(45), pages 4973-4981, September.
    7. Schleich, Joachim & Hillenbrand, Thomas, 2019. "Water demand responds asymmetrically to rising and falling prices," Working Papers "Sustainability and Innovation" S03/2019, Fraunhofer Institute for Systems and Innovation Research (ISI).
    8. Milan Ščasný & Šarlota Smutná, 2021. "Estimation of price and income elasticity of residential water demand in the Czech Republic over three decades," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(2), pages 580-608, June.
    9. Liang Lu & David Deller & Morten Hviid, 2018. "Price and Behavioural Signals to Encourage Household Water Conservation in Temperate Climates," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2018-01, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    10. Lin, Boqiang & Jiang, Zhujun, 2012. "Designation and influence of household increasing block electricity tariffs in China," Energy Policy, Elsevier, vol. 42(C), pages 164-173.
    11. Molinos-Senante, María & Donoso, Guillermo, 2016. "Water scarcity and affordability in urban water pricing: A case study of Chile," Utilities Policy, Elsevier, vol. 43(PA), pages 107-116.
    12. Liang Lu & David Deller & Morten Hviid, 2019. "Price and Behavioural Signals to Encourage Household Water Conservation: Implications for the UK," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(2), pages 475-491, January.
    13. 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.
    14. Marie-Estelle Binet & Fabrizio Carlevaro & Michel Paul, 2014. "Estimation of Residential Water Demand with Imperfect Price Perception," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 561-581, December.
    15. Michael O'Donnell & Robert P. Berrens, 2018. "Understanding Falling Municipal Water Demand in a Small City Dependent on the Declining Ogallala Aquifer: Case Study of Clovis, New Mexico," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-40, October.
    16. Gawel, Erik & Sigel, Katja & Bretschneider, Wolfgang, 2011. "Affordability of water supply in Mongolia: Empirical lessons for measuring affordability," UFZ Discussion Papers 9/2011, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    17. Arbues, Fernando & Villanu´a, Inmaculada & Barberán Ortí, Ramón, 2010. "Household size and residential water demand: an empirical approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 1-20.
    18. Younes Ben Zaied & Nidhaleddine Ben Cheikh & Pascal Nguyen, 2017. "Modeling nonlinear water demand : The case of Tunisia," Economics Bulletin, AccessEcon, vol. 37(2), pages 637-644.
    19. Beecher, Janice & Gould, Tom, 2018. "Pricing wastewater to save water: Are theory and practice transferable?," Utilities Policy, Elsevier, vol. 52(C), pages 81-87.
    20. Jayachandran, Seema & Jack, Kelsey & Rao, Sarojini, 2018. "Environmental externalities and free-riding in the household," CEPR Discussion Papers 12558, C.E.P.R. Discussion Papers.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:99:y:2023:i:326:p:436-453. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.