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Urban Water Demand with Periodic Error Correction

  • David R. Bell
  • Ronald C. Griffin
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    Monthly demand for publicly supplied water to U.S. residences and businesses is estimated from a 10-year panel of 167 cities. A periodic error correction model integrates monthly, annual, and long-run time scales. Statistical consistency is validated by unit root tests adapted to the monthly frequency. Water and wastewater price elasticity of demand is estimated by sector, calendar month, and time horizon.

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    File URL: http://le.uwpress.org/cgi/reprint/87/3/528
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    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 87 (2011)
    Issue (Month): 3 ()
    Pages: 528-544

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    Handle: RePEc:uwp:landec:v:87:y:2011:iii:1:p:528-544
    Contact details of provider: Web page: http://le.uwpress.org/

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    1. J. E. Schefter & E. L. David, 1985. "Estimating Residential Water Demand under Multi-Part Tariffs Using Aggregate Data," Land Economics, University of Wisconsin Press, vol. 64(3), pages 272-280.
    2. David W. Carter & J. Walter Milon, 2005. "Price Knowledge in Household Demand for Utility Services," Land Economics, University of Wisconsin Press, vol. 81(2).
    3. Antonio Musolesi & Mario Nosvelli, 2007. "Dynamics of residential water consumption in a panel of Italian municipalities," Applied Economics Letters, Taylor & Francis Journals, vol. 14(6), pages 441-444.
    4. Boswijk, H Peter & Franses, Philip Hans, 1995. "Periodic Cointegration: Representation and Inference," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 436-54, August.
    5. Diakité, Daouda & Semenov, Aggey & Thomas, Alban, 2009. "A proposal for social pricing of water supply in Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 88(2), pages 258-268, March.
    6. R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages S57-S65, 09.
    7. Geoff Edwards, 2006. "Whose Values Count? Demand Management for Melbourne's Water," The Economic Record, The Economic Society of Australia, vol. 82(s1), pages S54-S63, 09.
    8. Ronald C. Griffin & James W. Mjelde, 2000. "Valuing Water Supply Reliability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 414-426.
    9. Kunst, Robert M, 1993. "Seasonal Cointegration, Common Seasonals, and Forecasting Seasonal Series," Empirical Economics, Springer, vol. 18(4), pages 761-76.
    10. Roberto Martinez-Espineira & Celine Nauges, 2004. "Is all domestic water consumption sensitive to price control?," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1697-1703.
    11. Basani, Marcello & Isham, Jonathan & Reilly, Barry, 2008. "The Determinants of Water Connection and Water Consumption: Empirical Evidence from a Cambodian Household Survey," World Development, Elsevier, vol. 36(5), pages 953-968, May.
    12. Sheila Olmstead & W. Michael Hanemann & Robert N. Stavins, 2007. "Water Demand Under Alternative Price Structures," NBER Working Papers 13573, National Bureau of Economic Research, Inc.
    13. Sylvestre Gaudin & Ronald C. Griffin & Robin C. Sickles, 2001. "Demand Specification for Municipal Water Management: Evaluation of the Stone-Geary Form," Land Economics, University of Wisconsin Press, vol. 77(3), pages 399-422.
    14. Shin, Jeong-Shik, 1985. "Perception of Price When Price Information Is Costly: Evidence from Residential Electricity Demand," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 591-98, November.
    15. Bushnell, James & Mansur, Erin T., 2005. "Consumption Under Noisy Price Signals: A Study of Electricity Retail Rate Deregulation in San Diego," Staff General Research Papers 13142, Iowa State University, Department of Economics.
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