Residential water demand in the Slovak Republic

Dalmas, Laurent; Reynaud, Arnaud

doi:10.4337/9781845424657.00010

Cited by 2 publications

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“…The purpose of our study is to disentangle the influence of income and price on tap water consumption, while controlling for a very rich set of household socio‐demographic characteristics and characteristics of the place of residence. Our preferred model indicates that the price elasticity is −0.22 on average over the whole period, which is on the low end of existing estimates of demand price elasticity estimated for the most industrialized countries, 16 but very similar to estimates obtained by studies in the same geographical region, such as Dalmas and Reynaud (2004, Slovak Republic), Bartczak, Kopanska, and Raczka (2009, Poland), and Schleich and Hillenbrand (2009, Germany). However, our findings indicate that households were more responsive at the beginning of the period in 1994–1997 and during 1998–2001 than at the end of the period analyzed (2011–2016), resulting in the own price elasticity of −0.43, −0.56, and 0.27, respectively.…”

Section: Discussionsupporting

confidence: 80%

“…For comprehensive reviews of this literature, see Arbués et al (2003), Dalhuisen et al (2003), or Worthington and Hoffman (2008). Estimates of residential water demand in Central and Eastern European countries are still quite rare, except for Dalmas and Reynaud (2004, Slovak Republic), Bartczak, Kopanska, and Raczka (2009, Poland), OECD (2011, Czech Republic), and Hortová and Krištoufek (2014, Czech Republic).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The income elasticity is determined to be 0.10. Using data from a sample of 71 municipalities from Slovakia (1999–2001), Dalmas and Reynaud (2004) find that price elasticity varies between −0.5 and −0.3 depending on the specification of the water demand equation. Bartczak et al (2009) examine water demand in Poland.…”

Section: Literature Reviewmentioning

confidence: 99%

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Estimation of price and income elasticity of residential water demand in the Czech Republic over three decades

Ščasný

Smutná

2021

Journal of Consumer Affairs

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This paper contributes to residential water demand literature by providing price and income elasticity estimates for a country which has undergone deep structural, institutional and economic changes. We analyze short‐run and long‐run residential water demand using household‐level data for the Czech Republic for the period of 1993–2016, during which the price of water nearly tripled, consumption decreased by a third, and families became considerably richer. Our estimates of price and income elasticity indicate low responsiveness of households to changes of these factors. Income elasticity is about +0.16 and it is robust across models. The short‐run price elasticity is about −0.22, on the low end of estimates derived for other developed economies. Long‐run price elasticity is around −0.30. While households were more price responsive during the period of economic transformation, they became completely unresponsive during the later economic boom.

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Section: Discussionsupporting

confidence: 80%

Section: Literature Reviewmentioning

confidence: 99%

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Estimation of price and income elasticity of residential water demand in the Czech Republic over three decades

Ščasný

Smutná

2021

Journal of Consumer Affairs

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“…We use a generalized least squares (GLS) estimator with first‐order autoregression (AR(1)) disturbances to account for them. The Breusch‐Pagan Lagrangian multiplier test confirms the presence of municipal specific effects, and the Hausman test does not reject the null hypothesis of independence between the municipal effects and the exogenous regressors (this procedure is also followed by Dalmas and Reynaud [2005]). Therefore, the GLS estimator (random effects) is not only efficient but also consistent, so we choose to use it.…”

Section: Estimation Of Portuguese Residential Water Demandmentioning

confidence: 98%

Pricing for scarcity? An efficiency analysis of increasing block tariffs

Monteiro

Roseta-Palma

2011

Water Resources Research

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[1] Water pricing schedules often contain significant nonlinearities, such as the increasing block tariff (IBT) structure that is abundantly applied for residential users. The IBT is frequently supported as a good tool for achieving the goals of equity, water conservation, and revenue neutrality but seldom has been grounded on efficiency justifications. In particular, existing literature on water pricing establishes that although efficient schedules will depend on demand and supply characteristics, IBT cannot usually be recommended. In this paper, we consider whether the explicit inclusion of scarcity considerations can strengthen the appeal of IBT. Results show that when both demand and costs react to climate factors, increasing marginal prices may come about as a response to a combination of water scarcity and customer heterogeneity. We derive testable conditions and then illustrate their application through an estimation of Portuguese residential water demand. We show that the recommended tariff schedule hinges crucially on the choice of functional form for demand.Citation: Monteiro, H., and C. Roseta-Palma (2011), Pricing for scarcity? An efficiency analysis of increasing block tariffs, Water Resour. Res., 47, W06510,

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Residential water demand in the Slovak Republic

Cited by 2 publications

References 0 publications

Estimation of price and income elasticity of residential water demand in the Czech Republic over three decades

Estimation of price and income elasticity of residential water demand in the Czech Republic over three decades

Pricing for scarcity? An efficiency analysis of increasing block tariffs

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