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A long-run analysis of residential water consumption

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  • Ben Zaied Younes

    (LAREQUAD & CREM(UMR 6211 CNRS), UNIVERSITY OF RENNES 1)

Abstract

The main originality of this paper is to empirically investigate the long-run relationship between average regional water consumption and its determinants. To do so, we use quarterly non-stationary panel data covering the six Tunisian regions for the period 1980.1 to 2007.4 and a breakdown into two consumption blocks (a lower and an upper block). We apply the panel cointegration tests and estimation developed by Pedroni (1999). We obtain a long-run price elasticity for the upper block that is greater than the corresponding one for the lower block. Our results show that water tariffs can play an active role in conserving the precious water resource in countries characterized by scarcity, volatility and low water quality as is the case with Tunisia.

Suggested Citation

  • Ben Zaied Younes, 2013. "A long-run analysis of residential water consumption," Economics Bulletin, AccessEcon, vol. 33(1), pages 536-544.
    • Handle: RePEc:ebl:ecbull:eb-12-00826
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    References listed on IDEAS

    as
    1. Céline Nauges & Dale Whittington, 2010. "Estimation of Water Demand in Developing Countries: An Overview," The World Bank Research Observer, World Bank, vol. 25(2), pages 263-294, August.
    2. Roberto Martínez-Espiñeira, 2007. "An Estimation of Residential Water Demand Using Co-Integration and Error Correction Techniques," Journal of Applied Economics, Taylor & Francis Journals, vol. 10(1), pages 161-184, May.
    3. Céline Nauges & Alban Thomas, 2003. "Long-run Study of Residential Water Consumption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 25-43, September.
    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. 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.
    6. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    7. Pedroni, Peter, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-670, Special I.
    8. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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    More about this item

    Keywords

    Water consumption; long-run price elasticity; panel cointegration;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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