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Residential water demand and water waste in Taiwan

Author

Listed:
  • Ming-Feng Hung

    () (Tamkang University)

  • Bin-Tzong Chie

    (Tamkang University)

  • Tai-Hsin Huang

    (National Chengchi University)

Abstract

Residential water demand has long been an important topic of empirical research. How to estimate water waste, however, has rarely been touched. Using the stochastic frontier approach, this article jointly estimates the residential demand for water and water waste in Taiwan, where water resources are scarce and unevenly distributed throughout the island and across seasons. The empirical results confirm that residential water demand is closely related to household characteristics and the overuse of water is affected by environmental variables. The estimated price and income elasticities are below 0.1 in absolute value. The estimated amount of wasted water is around 83 L per capita per day, which is roughly 1/3 of the actual water consumption. It is also shown that overlooking the waste of water use results in an over-estimation of the subsistence water requirement.

Suggested Citation

  • Ming-Feng Hung & Bin-Tzong Chie & Tai-Hsin Huang, 2017. "Residential water demand and water waste in Taiwan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 249-268, April.
  • Handle: RePEc:spr:envpol:v:19:y:2017:i:2:d:10.1007_s10018-016-0154-5
    DOI: 10.1007/s10018-016-0154-5
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    2. Lee, Gi-Eu & Chou, Chang-Erh, 2020. "The Ex Ante Price Information Effect on Water Conservation: A Case Study of Taipei’s Water Tariff Adjustment," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304253, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Residential water demand; Water waste; Stochastic frontier approach; Price and income elasticities; Subsistence level;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

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