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Econometric Modeling and Analysis of Residential Water Demand Based on Unbalanced Panel Data

Author

Listed:
  • Carlevaro, Fabrizio

    (Geneva University)

  • Schlesser, C.

    (Geneva University)

  • Binet , M. E.

    (Geneva University)

  • Paul, M.

    (Geneva University)

Abstract

This paper develops an econometric methodology devised to analyze a sample of time unbalanced panel data on residential water consumption in the French island La Reunion with the purpose to bring out the main determinants of household water consumption and estimate the importance of water consumption by uses. For this purpose, we specify a daily panel econometric model and derive, by performing a time aggregation, a general linear regression model accounting for water consumption data recorded on periods of any calendar date and time length. To estimate efficiently the parameters of this model we develop a feasible two step generalized least square method. Using the principle of best linear unbiased prediction, we finally develop an approach allowing to consistently break down the volume of water consumption recorded on household water bills by uses, namely by enforcing this estimated decomposition to add up to the observed total. The application of this methodology to a sample of 437 unbalanced panel observations shows the scope of this approach for the empirical analysis of actual data.

Suggested Citation

  • Carlevaro, Fabrizio & Schlesser, C. & Binet , M. E. & Paul, M., 2007. "Econometric Modeling and Analysis of Residential Water Demand Based on Unbalanced Panel Data," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 8(4), pages 81-102.
    • Handle: RePEc:ris:apltrx:0192
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    Cited by:

    1. Marie-Estelle Binet & Fabrizio Carlevaro & Michel Paul, 2012. "Estimation of Residential Water Demand with Imprecise Price Perception," Economics Working Paper Archive (University of Rennes & University of Caen) 201233, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    2. 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.

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    More about this item

    Keywords

    econometric modeling; water consumption; panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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