Current Issues in the Economics of Water Resource Management

Theory, Applications and Policies

  • Panos Pashardes
  • Timothy Swanson
  • Anastasios Xepapadeas

Part of the Economy & Environment book series (ECEN, volume 23)

Table of contents

  1. Front Matter
    Pages i-x
  2. Introduction

    1. Front Matter
      Pages 1-1
    2. Panos Pashardes, Timothy Swanson, Anastasios Xepapadeas
      Pages 3-21
  3. Demand for Water

    1. Front Matter
      Pages 23-23
    2. Residential Demand for Water

    3. Irrigation Water Demand

  4. Water Efficiency

    1. Front Matter
      Pages 81-81
    2. Measurement of Water Efficiency

    3. Efficient Use and Management of Water

  5. Water Management Policies

    1. Front Matter
      Pages 147-147
    2. Water as a Multifaceted Resource — Horizontal management Considerations

    3. Water as an Industrial management Problem — Vertical Considerations

    4. Water Policy and Water Practice — Second Best

      1. Petra J. G. J. Hellegers, Ekko C. Van Ierland
        Pages 221-232
  6. Back Matter
    Pages 233-234

About this book

Introduction

The marginal price elasticities estimated by Martinez-Espineira conforms to expectation. The price specification that accounts for the changing proportion of water users in each block yields a higher elasticity (-0. 47) compared to the spec­ ification ignoring this feature of the data. However, this difference is not found to be statistically significant, a result attributed to the low power of the test (small sample size limiting the accuracy of estimates). In conclusion, the paper provides a theoretically correct price specification for demand functions under block pricing and aggregate data. The empirical findings in the paper, however, are not conclusive and further empirical work using more data and alternative (nonlinear) demand functions, is needed to show the practical implications of the arguments put forward by the Martinez-Espineira's paper. Static empirical consumer demand functions estimated with aggregate data are well known to suffer form serial correlation and other statistical problems asso­ ciated with misspecified dynamics. These dynamics arise because consumers do not react immediately to a change in prices due to their largely predetermined lifestyle. In the case of demand for water, for example, current purchases can be largely predetermined due to commitments arising from past purchases such as swimming pools, bathtubs, dishwashing machines, etc. Muellbauer and Pashardes (1992) show that the autoregressive nature of consumer demand data can be cap­ tured in a theoretically consistent manner by incorporating intertemporal aspects of consumer behaviour in the model through habit formation and durability.

Keywords

Conservation Water Resources Water policy Water resource management groundwater production

Editors and affiliations

  • Panos Pashardes
    • 1
  • Timothy Swanson
    • 2
  • Anastasios Xepapadeas
    • 3
  1. 1.Department of EconomicsUniversity of CyprusRepublic of Cyprus
  2. 2.University College LondonUK
  3. 3.Department of EconomicsUniversity of CreteGreece

Bibliographic information

  • DOI https://doi.org/10.1007/978-94-015-9984-9
  • Copyright Information Springer Science+Business Media B.V. 2002
  • Publisher Name Springer, Dordrecht
  • eBook Packages Springer Book Archive
  • Print ISBN 978-90-481-5986-4
  • Online ISBN 978-94-015-9984-9
  • Series Print ISSN 0924-1019
  • About this book