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Urban Water Demand with Periodic Error Correction

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  • David R. Bell
  • Ronald C. Griffin

Abstract

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.

Suggested Citation

  • David R. Bell & Ronald C. Griffin, 2011. "Urban Water Demand with Periodic Error Correction," Land Economics, University of Wisconsin Press, vol. 87(3), pages 528-544.
    • Handle: RePEc:uwp:landec:v:87:y:2011:iii:1:p:528-544
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    References listed on IDEAS

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    Cited by:

    1. Nathan DeMaagd & Michael J. Roberts, 2020. "Estimating Water Demand Using Price Differences of Wastewater Services," Working Papers 202019, University of Hawaii at Manoa, Department of Economics.
    2. Younes Ben Zaied & Nidhaleddine Ben Cheikh & Pascal Nguyen, 2017. "Modeling nonlinear water demand : The case of Tunisia," Economics Bulletin, AccessEcon, vol. 37(2), pages 637-644.
    3. Zheng, Jiajia & Kamal, Muhammad Abdul, 2020. "The effect of household income on residential wastewater output: Evidence from urban China," Utilities Policy, Elsevier, vol. 63(C).
    4. Fernandez, Mario Andres, 2013. "Decadal Climate Variability: Economic Implications In Agriculture And Water In The Missouri River Basin," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160199, New Zealand Agricultural and Resource Economics Society.
    5. Daniel A. Brent, 2016. "Estimating Water Demand Elasticity at the Intensive and Extensive Margin," Departmental Working Papers 2016-06, Department of Economics, Louisiana State University.
    6. Fullerton, Thomas M., Jr. & White, Katherine & Smith, Wm. Doyle & Walke, Adam G., 2012. "An Empirical Analysis of Halifax Municipal Water Consumption," MPRA Paper 54113, University Library of Munich, Germany, revised 14 Mar 2013.
    7. Tobarra-González, Miguel Ángel, 2013. "Factores explicativos de la demanda municipal de agua y efectos en el bienestar de la política tarifaria. Una aplicación a la cuenca del Segura/Explicative Factors of Municipal Water Demand and Effect," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 577-596, Septiembr.
    8. Olmstead, Sheila M., 2014. "Climate change adaptation and water resource management: A review of the literature," Energy Economics, Elsevier, vol. 46(C), pages 500-509.
    9. Beecher, Janice & Gould, Tom, 2018. "Pricing wastewater to save water: Are theory and practice transferable?," Utilities Policy, Elsevier, vol. 52(C), pages 81-87.

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    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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