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A convergence assessment of water price rates: evidence from major U.S. cities

Author

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  • Panayiotis Tzeremes

    (University of Thessaly)

  • Nickolaos G. Tzeremes

    (University of Thessaly)

Abstract

In this paper we examine whether there is a convergence among residential water price rates for thirty major U.S. cities over the period 2010–2017. By utilizing the methodological framework by Phillips and Sul (Econometrica 75:1771–1855, 2007, J Appl Econom 32:1039–1042, 2009) we test for the existence of convergence clubs among cities’ water pricing policies. We identify the existence of convergence clubs which are based on different consumption markets. The estimated transition paths reveal a tendency of policy makers to increase water price rates over the examined period, which is more pronounced for lower consumption markets.

Suggested Citation

  • Panayiotis Tzeremes & Nickolaos G. Tzeremes, 2018. "A convergence assessment of water price rates: evidence from major U.S. cities," Letters in Spatial and Resource Sciences, Springer, vol. 11(3), pages 361-368, October.
    • Handle: RePEc:spr:lsprsc:v:11:y:2018:i:3:d:10.1007_s12076-018-0218-1
    DOI: 10.1007/s12076-018-0218-1
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    References listed on IDEAS

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    1. Gil, Jose M. & Montañés, Antonio & Vásquez-González, Bernardo, 2023. "Are prices converging in the global sawnwood market?," Forest Policy and Economics, Elsevier, vol. 155(C).

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    More about this item

    Keywords

    Convergence clubs; Water price rates; U.S. cities;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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