Household Water Demand Estimation

Miguel Bacharach and William J. Vaughan

No 6298, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This working paper addresses the issues: 1) whether there is a simultaneous equations problem when estimating demand for water with multipart rate schedules and, if there is one, what techniques should be used to correct for it; and 2) whether average or marginal price is the relevant measure in estimating the demand function. In addition, the issue is raised of sample selection bias in a rate schedule, combined with a fixed charge for consumption below the level where a block rate tariff per unit consumed. This study uses results from a sample of 685 families from 34 localities in rural Argentina (taken in 1987) and presents an analysis of the results with different estimation techniques.

Keywords: water conservation; water consumption; water supply; water resources; environment (search for similar items in EconPapers)
Date: 1994-03
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:6298

DOI: 10.18235/0011616

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