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Price elasticity of household water demand in the Czech Republic

Author

Listed:
  • Jana Hortová

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)

  • Ladislav Kristoufek

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic
    Institute of Information Theory and Automation, Academy of Sciences of the Czech Republic, Pod Vodarenskou Vezi 4, 182 00, Prague, Czech Republic)

Abstract

In the Czech Republic, water prices have been steadily increasing while water consumption has been decreasing during the last decades. A great deal of literature is devoted to the price elasticity of water demand but to the best of our knowledge, no similar study has been devoted entirely to the Czech Republic. In the paper, we examine the short and long-run price elasticities of water demand in the Czech Republic between years 2000 and 2011. We fi nd that the water demand is inelastic (lower than one) with respect to water price regardless of the time period and the income elasticity is on the edge of statistical signi cance. Our inferences are in line with previous fi ndings.of the estimation setup, the wavelet-based estimator may become an attractive robust alternative to the traditional methods

Suggested Citation

  • 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.
    • Handle: RePEc:fau:wpaper:wp2014_38
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    File URL: http://ies.fsv.cuni.cz/sci/publication/show/id/5234/lang/cs
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    References listed on IDEAS

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    4. Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
    5. 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.
    6. 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.
    7. Grafton, R. Quentin & Kompas, Tom & To, Hang & Ward, Michael B., 2009. "Residential Water Consumption: A Cross Country Analysis," Research Reports 94823, Australian National University, Environmental Economics Research Hub.
    8. 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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    Cited by:

    1. Milan Ščasný & Šarlota Smutná, 2021. "Estimation of price and income elasticity of residential water demand in the Czech Republic over three decades," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(2), pages 580-608, June.

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    More about this item

    Keywords

    water consumption; price elasticity; income elasticity;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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