Household Water Demand in Andorra: Impact of Individual Metering and Seasonality

Arnaud Reynaud (), Marc Pons and Cristina Pesado
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Arnaud Reynaud: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique
Marc Pons: OBSA - Observatory for the Sustainability of Andorra = Observatori de la sostenibilitat d'Andorra
Cristina Pesado: OBSA - Observatory for the Sustainability of Andorra = Observatori de la sostenibilitat d'Andorra

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Abstract: Despite the large literature focused on residential water use, our knowledge of the impact of individual metering on household water consumption remains limited. Our work aims to fill this gap by providing the first estimate of the residential water demand function in the Principality of Andorra, where collective and individual metering coexists. Using a panel dataset covering the years 2006 to 2015, we propose estimating a domestic water demand function for the municipality of Andorra La Vella (the capital of Andorra). Our estimates reveal a price elasticity of the residential water demand equal to -0.7. Facing a price increase of 10 percent, households will react in the short run by reducing their water consumption by 7 percent. Interestingly, the price elasticity is found to be significantly different in single-family units compared to multi-family units. This may suggest a significant impact of individual metering on domestic water consumption in Andorra.

Keywords: residential water use; metering; andorra; water demand; price elasticity (search for similar items in EconPapers)
Date: 2018
Note: View the original document on HAL open archive server: https://hal.science/hal-01891747v1
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Citations: View citations in EconPapers (3)

Published in Water, 2018, 10 (3), ⟨10.3390/w10030321⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01891747

DOI: 10.3390/w10030321

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