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A long-run analysis of residential water consumption

Author

Listed:
  • Younes Ben Zaied

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

The main originality of this paper is to empirically investigate the long-run relationship between average regional water consumption and its determinants. To do so, we use quarterly non-stationary panel data covering the six Tunisian regions for the period 1980.1 to 2007.4 and a breakdown into two consumption blocks (a lower and an upper block). We apply the panel cointegration tests and estimation developed by Pedroni (1999). We obtain a long-run price elasticity for the upper block that is greater than the corresponding one for the lower block. Our results show that water tariffs can play an active role in conserving the precious water resource in countries characterized by scarcity, volatility and low water quality as is the case with Tunisia.

Suggested Citation

  • Younes Ben Zaied, 2013. "A long-run analysis of residential water consumption," Post-Print halshs-00864706, HAL.
    • Handle: RePEc:hal:journl:halshs-00864706
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    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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