Skip to main content
Fachgebiete
Automobil + Motoren Bauwesen + Immobilien Business IT + Informatik Elektrotechnik + Elektronik Energie + Nachhaltigkeit Finance + Banking Management + Führung Marketing + Vertrieb Maschinenbau + Werkstoffe Versicherung + Risiko
DE
EN
Bücher
Zeitschriften
Themenseiten
Organisationspsychologie Projektmanagement Marketing Smart Manufacturing
Weitere Formate
Podcasts Webinare Technik Webinare Wirtschaft Kongresse Veranstaltungskalender Awards
Jetzt Einzelzugang starten
Zugang für Unternehmen
Referenzkunden
SLX-Digitalkonferenz: Zukunftswerkstatt 2024

Mehr Umsatz mit Top-Kontakten

Am 7. Mai erfahren Sie, wie Vertriebsteams Leadgenerierung, Leadnurturing und Leadstrategien effizient steuern können.
Erweiterte Suche
Anmelden
nach oben
Water Resources Management
Erschienen in: Water Resources Management 3/2017

18.11.2016

Regional Differences in the Price Elasticity of Residential Water Demand in Spain

verfasst von: David Hoyos, Alaitz Artabe

Erschienen in: Water Resources Management | Ausgabe 3/2017

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

This paper explores the influence of regional climate variability on the elasticity of price for residential water demand in Spain. The data comes from the Spanish Survey of Family Budget (INE 2012), a national based survey of household living conditions including more than 15,000 observations. The econometric analysis included other determinants of residential water demand in Spain such as income and household characteristics. In line with the broad literature, the demand for water in Spain is found to be inelastic, although price elasticity differs notably when accounting for different climatic regions in the territory. The results have noteworthy policy implications as water pricing is considered an efficient means of long term sustainable planning of water resources management. The results imply that policy makers may have reasons to explore differentiating the impacts of water efficiency measures by region.
Vorheriger Artikel Evaluation and Assessment of Meteorological Drought by Different Methods in Trarza Region, Mauritania
Nächster Artikel Exploring the Potential and the Boundaries of the Rolling Horizon Technique for the Management of Reservoir Systems with over-Year Behaviour

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren
Anhänge
Nur mit Berechtigung zugänglich
Fußnoten
1
The approval of the European Directive in 2000 established a paradigmatic shift in the public management of water resources, not only in regards to its main objective (i.e. improving the environmental quality of European waters) but in the use of economic analysis as one of the main pillars for its implementation (Union 2000; Kristensen et al. 2013; Tsakiris 2015).
 
2
There is a growing theoretical literature suggesting that income elasticity is unlikely to be constant (Barbier et al. 2016). As suggested by an anonymous reviewer, other non-linear more flexible relationships, such as Box-Cox transformation of dependent and explanatory variables, were investigated. However, we found a non-significant lambda parameter suggesting that the semi-logarithmic functional form fits the data best in this particular setting.
 
3
White’s (1980) test is used to test the presence of heteroscedasticity in the error term and, under the null hypothesis of homoscedasticity, the test value is Chi2 (181) = 679.95 (p value <0.001). Therefore, we reject the null hypothesis and display robust standard errors.
 
4
Population indicators are often used in the literature to instrumentalise prices. Schleich and Hillenbrand (2009) use natural logarithm of population and population density as instruments.
 
5
The usually used Sargan (1958) and Basmann (1960) overidentification tests are not robust under heteroscedasticity since they assume that the errors are independent and identically distributed.
 
6
The income elasticity is calculated computing the mean of the individual-specific elasticities using household income level.
 
7
In a previous model excluding climatic conditions we found statistically significant differences in water demand between regions in Spain: compared with the Central region, warmer regions (i.e. Western, Southern and Canary Islands) were found to have statistically significant higher water demand and colder regions (Northern) lower.
 
8
Variable HOTWATER is not a good instrument for PRICE in the regression of the East Region according to Wooldridge’s (1995) robust score test. As a consequence, RENTALPERICEm2 is used as a second instrument in the East Region. RENTALPERICEm2 is the mean rent price for m2 of a house with the same characteristics (province, size, residential area, type of building).
 
Literatur
AEMET (2015) Datos climatológicos 1980–2010. AEMET, Agencia Española de Meteorología, Madrid
Agthe DE, Billings B, Dobra JL, Raffiee K (1986) A simultaneous equation demand model for block rates. Water Resour Res 22:1–4CrossRef
Barbier EB, Czajkowski M, Hanley N (2016) Is the income elasticity of the willingness to pay for pollution control constant? Environ Resour Econ:1–20. doi:10.​1007/​s10640-016-0040-4
Barros VR, Field CB (eds) (2015) Climate change 2014 – impacts, adaptation and vulnerability: part B: regional aspects. Cambridge University Press, New York
Basmann RL (1960) On finite sample distributions of generalized classical linear identifiability test statistics. J Am Stat Assoc 55:650–659CrossRef
Billings B (1982) Specification of block rate price variables in demand models. Land Econ 58:386–394CrossRef
Billings B (1987) Alternative demand model estimations for block rate pricing. Water Resour Bull 23:341–345CrossRef
Billings B, Agthe DE (1980) Price elasticities for water: a case of increasing block rates. Land Econ 56:73–84CrossRef
Carvalho M, Serralheiro R, Corte-Real J, Valverde P (2015) An analysis of the price escalation of non-linear water tariffs for domestic uses in Spain. Water Util J:13–18
Dalhuisen JM, Florax RJ, De Groot HL, Nijkamp P (2003) Price and income elasticities of residential water demand: a meta-analysis. Land Econ 79:292–308CrossRef
EEA (2013) Assessment of cost recovery through pricing of water. Publications Office of the European Union, EEA (European Environment Agency), Luxembourg, p. 2013
European Union (2000) Directive 2000/60/EC of the European Parliament and of the council of 23 October 2000 establishing a framework for community action in the field of water policy. Off J Eur Communities, 22 December 2000 (2000) L327/1-L327/72.
Frondel M, Messner M (2008) Price perception and residential water demand: evidence from a German household panel. In: 16th annual conference of the European association of environmental and resource economists in Gothenburg. pp 25–28
Garcia S, Reynaud A (2004) Estimating the benefits of efficient water pricing in France. Resour Energy Econ 26:1–25CrossRef
Gaudin S (2006) Effect of price information on residential water demand. Appl Econ 38:383–393CrossRef
Grafton RQ, Ward MB, To H, Kompas T (2011) Determinants of residential water consumption: Evidence and analysis from a 10-country household survey. Water Resour Res 47(8):1–14. doi:10.​1029/​2010WR009685
Griffin RC, Chang C (1990) Pretest analysis of water demand in thirty communities. Water Resour Res 26:2251–2255CrossRef
INE (2012) Encuesta de Presupuestos Familiares. INE, Instituto Nacional de Estadística, Madrid
Kristensen P, Luche Solheim A, Austnes K (2013) The water framework directive and state of Europe’s water. Eur Water:3–10
Martínez-Espiñeira R (2002) Residential water demand in the northwest of Spain. Environ Resour Econ 21:161–187CrossRef
Martínez-Espiñeira R (2003) Estimating water demand under increasing-block tariffs using aggregate data and proportions of users per block. Environ Resour Econ 26:5–23CrossRef
Martínez-Espiñeira R (2007) An estimation of residential water demand using co-integration and error correction techniques. J Appl Econ 10:161–184
Martínez-Espiñeira R, Nauges C (2004) Is all domestic water consumption sensitive to price control? Appl Econ 36:1697–1703CrossRef
Mazzanti M, Montini A (2006) The determinants of residential water demand: empirical evidence for a panel of Italian municipalities. Appl Econ Lett 13:107–111CrossRef
Moncur JE (1987) Urban water pricing and drought management. Water Resour Res 23:393–398CrossRef
Musolesi A, Nosvelli M (2007) Dynamics of residential water consumption in a panel of Italian municipalities. Appl Econ Lett 14:441–444CrossRef
Nauges C, Thomas A (2000) Privately operated water utilities, municipal price negotiation, and estimation of residential water demand: the case of France. Land Econ 76:68–85CrossRef
Nauges C, Thomas A (2003) Long-run study of residential water consumption. Environ Resour Econ 26:25–43CrossRef
Nieswiadomy ML, Molina DJ (1989) Comparing residential water demand estimates under decreasing and increasing block rates using household data. Land Econ 65:280–289CrossRef
Pérez-Urdiales M, García-Valiñas MA, Martínez-Espiñeira R (2016) Responses to changes in domestic water tariff structures: a latent class analysis on household-level data from Granada, Spain. Environ Resour Econ 63(1):167–191
Roseta-Palma C, Monteiro H, Coutinho PB, Fernandes PA (2013) Analysis of water prices in urban systems: experience from three basins in southern Portugal. Eur Water 43:33–45
Sargan JD (1958) The estimation of economic relationships using instrumental variables. Econometrica 26:393–415CrossRef
Schleich J, Hillenbrand T (2009) Determinants of residential water demand in Germany. Ecol Econ 68:1756–1769CrossRef
Schneider ML, Whitlatch EE (1991) User-specific water demand elasticities. J Water Resour Plan Manag 117:52–73CrossRef
White H (1980) A Heteroskedasticity-consistent covariance matrix estimator and a direct test for Heteroskedasticity. Econometrica 48:817–838CrossRef
Wooldridge JM (1995) Score diagnostics for linear models estimated by two stage least squares. Adv Econom Quant Econ 66–87
Metadaten
Titel
Regional Differences in the Price Elasticity of Residential Water Demand in Spain
verfasst von
David Hoyos
Alaitz Artabe
Publikationsdatum
18.11.2016
Verlag
Springer Netherlands
Erschienen in
Water Resources Management / Ausgabe 3/2017
Print ISSN: 0920-4741
Elektronische ISSN: 1573-1650
DOI
https://doi.org/10.1007/s11269-016-1542-0

Weitere Artikel der Ausgabe 3/2017

Water Resources Management 3/2017 Zur Ausgabe

OriginalPaper

Investigating a Suitable Empirical Model and Performing Regional Analysis for the Suspended Sediment Load Prediction in Major Rivers of the Aegean Region, Turkey

OriginalPaper

The Enhanced Honey-Bee Mating Optimization Algorithm for Water Resources Optimization

OriginalPaper

A Flood Forecasting Model that Considers the Impact of Hydraulic Projects by the Simulations of the Aggregate reservoir’s Retaining and Discharging

OriginalPaper

Multi-Criteria Environmental Impact Assessment of Alternative Irrigation Networks with an Adopted Matrix-Based Method

OriginalPaper

Exploring the Potential and the Boundaries of the Rolling Horizon Technique for the Management of Reservoir Systems with over-Year Behaviour

OriginalPaper

Innovative Trend Methodology Applications to Precipitation Records in Turkey