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Managing a scarce resource in a growing Asian economy: Water usage in Hong Kong

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  • Woo, Chi-Keung
  • Wong, Wing-Keung
  • Horowitz, Ira
  • Chan, Hing-Lin

Abstract

An econometric analysis of Hong Kong's monthly per capita water usage for the 25-year period of April 1985 through March 2010 reveals that per capita usage is insensitive to price but dependent upon past usage, per capita income, weather, and seasonal factors, with rising income countering what would otherwise be a downward trend. Given Hong Kong's current inflationary environment and large government budget surplus, these findings affirm the Hong Kong Water Supplies Department's adopted strategy of total water management towards sustainable use of water resources, in lieu of either periodic service interruption or price increases as policy instruments.

Suggested Citation

  • Woo, Chi-Keung & Wong, Wing-Keung & Horowitz, Ira & Chan, Hing-Lin, 2012. "Managing a scarce resource in a growing Asian economy: Water usage in Hong Kong," Journal of Asian Economics, Elsevier, vol. 23(4), pages 374-382.
    • Handle: RePEc:eee:asieco:v:23:y:2012:i:4:p:374-382
    DOI: 10.1016/j.asieco.2012.03.007
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    References listed on IDEAS

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    More about this item

    Keywords

    Hong Kong; Water-usage elasticity; Demand-side management; Price elasticity; Partial-adjustment regression model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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