Advertisement

Elasticity of Demand for Water Resource Managers

  • Donald E. Agthe
  • R. Bruce Billings
Chapter
  • 215 Downloads
Part of the Water Science and Technology Library book series (WSTL, volume 46)

Abstract

Demand management policies for water systems should be based on knowledge of economic behavior of the water customers. Some aspects of this economic behavior can be quantified using the concept of elasticity. Relatively simple calculations can guide the water system management in solving questions of equity and efficiency in water production and distribution. While the concept of elasticity can be applied to an almost endless number of topics, this chapter discusses the utilization and calculation of price elasticity of demand, cross price elasticity of demand, and income elasticity of demand for water.

Keywords

Price Elasticity Demand Curve Water Resource Research Marginal Price Cross Price Elasticity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Agthe, D.E., and R.B. Billings, 1997. “Equity and Conservation Pricing Policy for A Government-Run Water Utility,” Journal of Water Supply and Research Technology-Aqua, 45 (5): 252–260.Google Scholar
  2. Agthe, D.E., and R.B. Billings, 1987. “Equity, Price Elasticity, and Household Income Under Increasing Block Rates for Water,” The American Journal of Economics and Sociology, 46 (3): 273–286.CrossRefGoogle Scholar
  3. Agthe, D.E., R.B. Billings, J.L. Dobra and K. Raffiee, 1986. “A Simultaneous Equation Model for Block Rates,” Water Resources Research, 22 (1): 1–4CrossRefGoogle Scholar
  4. Babin, F.G., C.E. Willis and P.G. Allan, 1982. “Substitutes Between Water and Other Inputs,” American Journal of Agricultural Economics, 64(1): 149–151.CrossRefGoogle Scholar
  5. Billings, R.B., 1982. “Specification of Block Rate Variables in Demand Models,” Land Economics, 58 (3): 73–84.CrossRefGoogle Scholar
  6. Billings, R.B. and D.E. Agthe, 1980. “Price Elasticities for Water: A Case of Increasing Block Rates,” Land Economics, 56 (1): 73–84.CrossRefGoogle Scholar
  7. Billings, R. B. and C.V. Jones, 1996. Forecasting Urban Water Demand, AWWA, Denver, Colorado.Google Scholar
  8. Clark, R.M., and H.C. Goddard, 1977. “Cost and Quality of Water Supply,” Journal of the American Water Works Association 69 (1): 3–15.Google Scholar
  9. Gottlieb, M., 1963. “Urban Domestic Demand for Water: A Kansas Case Study,” Land Economics, 39 (2): 204–210.CrossRefGoogle Scholar
  10. Griffin, R.C. and C. Chang, 1990. “Pretest Analysis of Water Demand in Thirty Communities,” Water Resources Research, 26 (10): 2251–2255.CrossRefGoogle Scholar
  11. Griffin, A. and W.E. Martin, 1981. “Price Elasticities for Water: A Case of Increasing Block Rates: Comment,” Land Economics, 57 (2): 266–273.CrossRefGoogle Scholar
  12. Grima, A.P., 1973. “The Impact of Policy Variables on Residential Water Demand and Related Investment Requirements,” Water Resources Bulletin, 9 (4): 703–710.CrossRefGoogle Scholar
  13. Hewitt, J.A. and W.M. Hanemann, 1995. “A Discrete/ Continuous Choice Approach to Residential Water Demand under Block Rate Pricing.” Land Economics, 71 (2): 173–192.CrossRefGoogle Scholar
  14. Houthakker, H.S. and L.D. Taylor, 1970. Consumer Demand in American, 2nd Edition, Harvard University Press, Cambridge, Massachusetts.Google Scholar
  15. Howe, C.W, and F.P. Linaweaver Jr., 1967. “The Impact of Price on Residential Wader Demand and Its Relation to System Design and Price Structure,” Water Resources Research, 3(1): 13–32.CrossRefGoogle Scholar
  16. Jones, C.V., and J.R. Morris, 1984. “Instrumental Price Estimates and Residential Water Demand,” Water Resources Research, 20, (2): 197–201.CrossRefGoogle Scholar
  17. Morgan, W.D., and P. Pelosi, 1980. “The Effects of Water Conservation Kits on Water Use,” Journal of the American Water Works Association, 72 (3): 131–133.Google Scholar
  18. Muncur, J.E.T., 1987. “Urban Water Pricing and Drought Management,” Water Resources Research, 23 (3): 393–398.CrossRefGoogle Scholar
  19. Rensetti, S., 1988. “An Econometric Study of Industrial Water Demands in British Columbia,” Water Resources Research 24 (10): 1569–1573.CrossRefGoogle Scholar
  20. Thornthwaite, C.W., and J.F. Mather, 1955. The Water Balance, Publications in Climatology, South Centerton, New Jersey, Drexel Institute of Technology, Laboratory of Climatology.Google Scholar
  21. Witcomb, J.B., 1990. “Water Use Reductions from Retrofitting Indoor Water fixtures,” Water Resources Bulletin, 26 (6): 921–926.CrossRefGoogle Scholar
  22. Weber, J.A., 1989. “Forecasting Demand and Measuring Price Elasticity,” Journal of the American Water Works Association, 81 (5): 57–65.Google Scholar
  23. Wong, S.T., 1972. “A Model on Municipal Water Demand: A Case Study of Northeastern Illinois,” Land Economics, 48 (2): 34–44.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2003

Authors and Affiliations

  • Donald E. Agthe
  • R. Bruce Billings
    • 1
  1. 1.University of ArizonaUSA

Personalised recommendations