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Potential for Pricing Policies in Water Resource Management: Estimation of Urban Residential Water Demand in Zaragoza, Spain

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  • Fernando Arbues

    (Department of Public Economics, University of Zaragoza, Fac. CC. Económicas y Empresariales, Gran Via 2, 50005 Zaragoza, Spain, farbues@posta.unizar.es)

  • Inmaculada Villanua

    (Department of Economic Analysis, University of Zaragoza, E. U. Estudios Sociales, Violante de Hungría 23, 50009 Zaragoza, Spain, villanua@posta.unizar.es)

Abstract

This paper presents an empirical study to estimate the urban residential water demand in Zaragoza, Spain; this allows the testing of the short-run sensitivity of water demand to changes in a set of socioeconomic variables and especially in prices. A residential water demand model is estimated using a dynamic panel data technique. Furthermore, three water demand equations have been proposed and two alternative process specifications are applied. The empirical application suggests that the linear demand specification is the most adequate. Finally, the results indicate that domestic demands are inelastic with respect to price.

Suggested Citation

  • Fernando Arbues & Inmaculada Villanua, 2006. "Potential for Pricing Policies in Water Resource Management: Estimation of Urban Residential Water Demand in Zaragoza, Spain," Urban Studies, Urban Studies Journal Limited, vol. 43(13), pages 2421-2442, December.
    • Handle: RePEc:sae:urbstu:v:43:y:2006:i:13:p:2421-2442
    DOI: 10.1080/00420980601038255
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    References listed on IDEAS

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    1. Valeria Bernardo & Xavier Fageda & Montserrat Termes, 2015. "Do droughts have long-term effects on water consumption? Evidence from the urban area of Barcelona," Applied Economics, Taylor & Francis Journals, vol. 47(48), pages 5131-5146, October.
    2. Tamkinat Rauf & M. Wasif Siddiqi, 2008. "Price-setting for Residential Water: Estimation of Water Demand in Lahore," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 893-906.
    3. Fullerton, Thomas M., Jr. & Ceballos, Alejandro & Walke, Adam G., 2015. "Short-Term Forecasting Analysis for Municipal Water Demand," MPRA Paper 78259, University Library of Munich, Germany, revised 04 Aug 2015.
    4. 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.
    5. Maria Carmela Aprile & Damiano Fiorillo, 2016. "Water Conservation Behavior and Environmental Concerns," Discussion Papers 6_2016, CRISEI, University of Naples "Parthenope", Italy.

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