Estimating Urban Residential Water-Demand with Increasing Block Prices: The Case of Perth, Western Australia

Vilaphonh Xayavong, Michael Burton and Ben White

No 7061, Working Papers from University of Western Australia, School of Agricultural and Resource Economics

Abstract: This study uses panel data at suburb level to estimates the elasticity water demands in Perth, Australia from 1995 to 2005. After deriving the consumer’s water demand under a non-linear budget constraint, we estimate the water demand model, which accounts for how water (and other purchased goods) is used to satisfy fundamental desires of the household. We have applied the specification of price that provided the correctly estimated marginal price from the block tariff structure, and employed a maximum likelihood estimation technique to tackle the endogeneity and heteroskedasticity issues. Our estimation of water demand price elasticities are slightly higher (more elastic) than previous study in Perth, but broadly in line with other estimates in the literature.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 26
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ageconsearch.umn.edu/record/7061/files/wp070004.pdf (application/pdf)

Related works:
Working Paper: Estimating Urban Residential Water-Demand With Increasing Block Prices: The Case of Perth, Western Australia (2008)
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:ags:uwauwp:7061

DOI: 10.22004/ag.econ.7061

Access Statistics for this paper

More papers in Working Papers from University of Western Australia, School of Agricultural and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().