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Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates differ

Author

Listed:
  • Jasper M. Dalhuisen

    (Vrije Universiteit Amsterdam)

  • Raymond J.G.M. Florax

    (Vrije Universiteit Amsterdam)

  • Henri L.F.M. de Groot

    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

Abstract

This paper presents a meta-analysis of variations in price and income elasticities of residential water demand.Information on the determinants of consumer demand is of pivotal importance for the efficiency and efficacy ofpublic and private policy-making. It is also crucial for effective water demand management. We focus on theapplication of statistical methods to synthesize research results on price and income elasticities of residentialwater demand report in the literature. These techniques are generally referred to as meta-analysis. This type ofanalysis constitutes an adequate tool for explaining why empirical estimates of the price and income elasticity ofresidential water demand vary to such considerable extents. The set of explanatory factors used in themeta-analysis includes variables derived from microeconomic choice theory and moderator variables reflectingdifferences in spatial and temporal dynamics, research design, and statistical quality of the estimates ofpreviously published studies.

Suggested Citation

  • Jasper M. Dalhuisen & Raymond J.G.M. Florax & Henri L.F.M. de Groot & Peter Nijkamp, 2001. "Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates differ," Tinbergen Institute Discussion Papers 01-057/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20010057
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    References listed on IDEAS

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    Cited by:

    1. Gregorio Castro-Rosales & Ramiro Esqueda-Walle, 2021. "Spatial Analysis of Urban Water Use Management in the Northern Border Region of Mexico," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(11), pages 126-126, July.
    2. Roberto Martínez-Espiñeira, 2007. "An Estimation of Residential Water Demand Using Co-Integration and Error Correction Techniques," Journal of Applied Economics, Taylor & Francis Journals, vol. 10(1), pages 161-184, May.
    3. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
    4. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
    5. Raymond J.G.M. Florax & Henri L.F. de Groot & Ruud A. de Mooij, 2002. "Meta-analysis: A Tool for Upgrading Inputs of Macroeconomic Policy Models," Tinbergen Institute Discussion Papers 02-041/3, Tinbergen Institute.
    6. Tomas Havranek & Zuzana Irsova & Tomas Vlach, 2018. "Measuring the Income Elasticity of Water Demand: The Importance of Publication and Endogeneity Biases," Land Economics, University of Wisconsin Press, vol. 94(2), pages 259-283.
    7. Birgül Çakır Yıldırım & Güliz Karaarslan Semiz, 2019. "Future Teachers’ Sustainable Water Consumption Behavior: A Test of the Value-Belief-Norm Theory," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    8. Florax, R.J.G.M., 2002. "Accounting for dependence among study results in Meta-Analysis: methodology and applications to the valuation and use of natural resources," Serie Research Memoranda 0005, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    9. 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.

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    More about this item

    Keywords

    water demand; price elasticity; income elasticity; meta-analysis;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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