Modeling Commercial Demand for Water: Exploring Alternative Prices, Instrumental Variables, and Heterogeneity

Matthew Flyr, Jesse Burkhardt, Christopher Goemans, Liesel Hans, Abbye Neel and Alexander Maas ()

Land Economics, 2019, vol. 95, issue 2, 211-224

Abstract: In this paper, we introduce a previously unused instrumental variable to estimate the elasticity of commercial water demand for firms served by a large municipal utility. We then present evidence that firms are more responsive to one-period lagged average price than marginal price. Finally, we find notable differences in elasticity among different categories of businesses. The findings in this paper are particularly important as water utilities consider how to maintain revenue while coping with limited water supplies and increasing commercial demand.

JEL-codes: Q31 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.3368/le.95.2.211
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/95/2/211
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:95:y:2019:i:2:p:211-224

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().