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Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates differ

Jasper M. Dalhuisen (), Raymond Florax, Henri de Groot () and Peter Nijkamp
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Jasper M. Dalhuisen: Vrije Universiteit Amsterdam

No 01-057/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper presents a meta-analysis of variations in price and income elasticities of residential water demand.Information on the determinants of consumer demand is of pivotal importance for the efficiency and efficacy ofpublic and private policy-making. It is also crucial for effective water demand management. We focus on theapplication of statistical methods to synthesize research results on price and income elasticities of residentialwater demand report in the literature. These techniques are generally referred to as meta-analysis. This type ofanalysis constitutes an adequate tool for explaining why empirical estimates of the price and income elasticity ofresidential water demand vary to such considerable extents. The set of explanatory factors used in themeta-analysis includes variables derived from microeconomic choice theory and moderator variables reflectingdifferences in spatial and temporal dynamics, research design, and statistical quality of the estimates ofpreviously published studies.

Keywords: water demand; price elasticity; income elasticity; meta-analysis (search for similar items in EconPapers)
JEL-codes: D11 D12 H31 Q25 Q28 (search for similar items in EconPapers)
Date: 2001-06-13
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