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An Econometric Analysis of Residential Water Demand in Cyprus

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  • Alexandros Polycarpou
  • Theodoros Zachariadis

Abstract

This paper analyses econometrically residential water demand in the three major urban areas of Cyprus, a semi-arid country with medium to high income levels. Water demand turns out to be inelastic, but not insensitive, to prices; price elasticity is less than unity in absolute terms, but significantly different from zero. The analysis further shows that periodic interruptions in household water supply, which were applied as an urgent water saving measure in 2008–2009, did not encourage water conservation among the population. The paper discusses these results, pointing at the need for appropriate water pricing policies and long-term planning in order to move towards sustainable water resource management. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Alexandros Polycarpou & Theodoros Zachariadis, 2013. "An Econometric Analysis of Residential Water Demand in Cyprus," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 309-317, January.
    • Handle: RePEc:spr:waterr:v:27:y:2013:i:1:p:309-317
    DOI: 10.1007/s11269-012-0187-x
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    9. Valeria Di Cosmo, 2011. "Are the Consumers Always Ready to Pay? A Quasi-Almost Ideal Demand System for the Italian Water Sector," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(2), pages 465-481, January.
    10. Jean-Daniel Rinaudo & Noémie Neverre & Marielle Montginoul, 2012. "Simulating the Impact of Pricing Policies on Residential Water Demand: A Southern France Case Study," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(7), pages 2057-2068, May.
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    2. Sholpan Saimova & Gulsim Makenova & Aizhan Skakova & Aitolkyn Moldagaliyeva & Ardak Beisembinova & Zhamilya Berdiyarova & Bagdagul Imanbekova, 2020. "Towards a Low-carbon Economic Sustainable Development: Scenarios and Policies for Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 638-646.
    3. Tomas Havranek & Zuzana Irsova & Tomas Vlach, 2018. "Measuring the Income Elasticity of Water Demand: The Importance of Publication and Endogeneity Biases," Land Economics, University of Wisconsin Press, vol. 94(2), pages 259-283.
    4. Mengshan Lee & Berrin Tansel & Maribel Balbin, 2013. "Urban Sustainability Incentives for Residential Water Conservation: Adoption of Multiple High Efficiency Appliances," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(7), pages 2531-2540, May.
    5. Michael O'Donnell & Robert P. Berrens, 2018. "Understanding Falling Municipal Water Demand in a Small City Dependent on the Declining Ogallala Aquifer: Case Study of Clovis, New Mexico," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-40, October.
    6. Elham Erfanian & Alan R. Collins, 2017. "Charges for Water and Access: What Explains the Differences in West Virginia Municipalities?," Working Papers Working Paper 2017-02, Regional Research Institute, West Virginia University.
    7. Víctor Manuel Fernández Pacheco & Rodolfo Espina Valdés & Enrique Bonet Gil & Antonio Navarro Manso & Eduardo Álvarez Álvarez, 2020. "Techno-Economic Analysis of Residential Water Meters: A Practical Example," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(8), pages 2471-2484, June.
    8. 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.
    9. Jana Hortová & Ladislav Kristoufek, 2014. "Price elasticity of household water demand in the Czech Republic," Working Papers IES 2014/38, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Dec 2014.
    10. Elham Erfanian & Alan R. Collins, 2018. "Charges for Water and Access: What Explains the Differences Among West Virginian Municipalities?," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-27, October.
    11. David Hoyos & Alaitz Artabe, 2017. "Regional Differences in the Price Elasticity of Residential Water Demand in Spain," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(3), pages 847-865, February.
    12. Diego Maria André & José Carvalho, 2014. "Spatial Determinants of Urban Residential Water Demand in Fortaleza, Brazil," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(9), pages 2401-2414, July.
    13. Keivan Karimlou & Nemat Hassani & Abdollah Rashidi Mehrabadi & Mohammad Reza Nazari, 2019. "Calculating Price Elasticity of Water Demand Using Gene Expression Programming Based on Economic, Social and Meteorological Variables," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(12), pages 4171-4188, September.
    14. Theodoros Zachariadis, 2016. "Proposal for a Green Tax Reform in Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 10(2), pages 127-139, December.
    15. Dália Loureiro & Aisha Mamade & Marta Cabral & Conceição Amado & Dídia Covas, 2016. "A Comprehensive Approach for Spatial and Temporal Water Demand Profiling to Improve Management in Network Areas," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(10), pages 3443-3457, August.

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