Water and Energy Price Impacts on Residential Water Demand in Copenhagen

Hansen, Lars Gårn

doi:10.2307/3147158

Cited by 64 publications

(51 citation statements)

References 9 publications

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“…Therefore, these results cannot be directly taken as actual measures of price elasticities; thus, the method presented has to be further implemented, primarily obtaining and using empirical data, to improve the accuracy of the results. As aforementioned water and energy cross-price elasticities have been barely studied (see Hansen [1996]) probably Figure 9. Average demand function given marginal water price increase for each utility.…”

Section: Discussionmentioning

confidence: 99%

“…Given that water and energy are complementary goods in this context, price elasticities and cross-price elasticities can be obtained. As far as we know only Hansen [1996] obtained the energy crossprice elasticity using an econometric model of residential water demand derived from a model of household production of final consumption goods taking water, energy and an aggregate of other goods as inputs.…”

Section: Introductionmentioning

confidence: 99%

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Optimal residential water conservation strategies considering related energy in California

Escriva-Bou

Lund

Pulido-Velázquez

2015

Water Resources Research

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Although most freshwater resources are used in agriculture, residential water use is a much more energy intensive user. Based on this, we analyze the increased willingness to adopt water conservation strategies if energy cost is included in the customers' utility function. Using a Water-Energy-CO 2 emissions model for household water end uses and probability distribution functions for parameters affecting water and water-related energy use in 10 different locations in California, this research introduces a probabilistic two-stage optimization model considering technical and behavioral decision variables to obtain the most economical strategies to minimize household water and water-related energy bills and costs given both water and energy price shocks. Results can provide an upper bound of household savings for customers with well-behaved preferences, and show greater adoption rates to reduce energy intensive appliances when energy is accounted, resulting in an overall 24% reduction in indoor water use that represents a 30% reduction in water-related energy use and a 53% reduction in household water-related CO 2 emissions. Previous use patterns and water and energy rate structures can affect greatly the potential benefits for customers and so their behavior. Given that water and energy are somewhat complementary goods for customers, we use results of the optimization to obtain own-price and cross-price elasticities of residential water use by simulating increases in water and energy prices. While the results are highly influenced by assumptions due to lack of empirical data, the method presented has no precedent in the literature and hopefully will stimulate the collection of additional relevant data.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Optimal residential water conservation strategies considering related energy in California

Escriva-Bou

Lund

Pulido-Velázquez

2015

Water Resources Research

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“…In the 1980s, many studies on residential water demand focused on an economic analysis using econometrics methods [17][18][19][20]. In the 1990s, researchers emphasized new insights, such as the adoption of low-flow equipment by households, the welfare consequences of price regulation, and case studies of European countries [21][22][23][24][25]. In the 2000s, researchers considered the importance of threshold price levels [26].…”

Section: Review Of Existing Literaturementioning

confidence: 99%

The Limits of Water Pricing in a Developing Country Metropolis: Empirical Lessons from an Industrial City of Pakistan

Ahmad

Ali

Mirza

et al. 2017

Water

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This paper seeks to question the effectiveness of water pricing as a means of consumer behavioural change in urban centres of the Global South by analysing the domestic usage for water in a major industrial city of Pakistan. Using survey data of 1100 households from Faisalabad city, we estimate the price and income elasticities of water demand. Instrumental variable methods are applied to overcome the endogeneity issues of water pricing. The findings reflect that price and income elasticities vary across different groups. Price elasticities range from −0.43 to −0.71, and income elasticities vary between 0.01 and 0.12. These findings suggest that pricing policies may have limited scope to drive households' water consumption patterns. However, these empirics may suggest that policy makers should design an appropriate tariff structure to increase revenues that can be invested to further improve the existing water infrastructure. The study findings also suggest that non-pricing instruments, such as water saving campaigns, may be helpful in driving an efficient use of water in rapidly growing cities in the developing world.

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“…Although studies from the US have remained common since 2006 [17,18], many have also concentrated on developing countries ( [19] and references therein), for example, Marinoski et al [20] focused on Brazil and Araral and Wang [21] focused on key cities, states, and/or provinces in Southeast Asia. In addition, many European countries have featured in recent studies concerned with water consumption (Table 1), including France [22,23], Cyprus [24], Spain [25][26][27][28][29], Sweden [30,31], Germany [32], Denmark [33], Greece [34], and Poland [35]. Italy has been studied only with a regional and local focus: Mazzanti and Montini [10] studied the Emilia Romagna Region, Musolesi and Nosvelli [11] studied the Cremona Province, and Statzu and Strazzera [12] studied the island of Sardinia.…”

Section: Literature Reviewmentioning

confidence: 99%

Estimating the Determinants of Residential Water Demand in Italy

Romano

Salvati

2014

Water

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Abstract:The aim of this study was to estimate the determinants of residential water demand for chief towns of every Italian province, in the period 2007-2009, using the linear mixedeffects model estimated with the restricted-maximum-likelihood method. Results confirmed that the applied tariff had a negative effect on residential water consumption and that it was a relevant driver of domestic water consumption. Moreover, income per capita had a positive effect on water consumption. Among measured climatic and geographical features, precipitation and altitude exerted a strongly significant negative effect on water consumption, while temperature did not influence water demand. Further, data show that small towns in terms of population served were characterized by lower levels of consumption. Water utilities ownership itself did not have a significant effect on water consumption but tariffs were significantly lower and residential water consumption was higher in towns where the water service was managed by publicly owned water utilities. However, further research is needed to gain a better understanding of the connection between ownership of water utilities and water prices and water consumption.

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Water and Energy Price Impacts on Residential Water Demand in Copenhagen

Cited by 64 publications

References 9 publications

Optimal residential water conservation strategies considering related energy in California

Optimal residential water conservation strategies considering related energy in California

The Limits of Water Pricing in a Developing Country Metropolis: Empirical Lessons from an Industrial City of Pakistan

Estimating the Determinants of Residential Water Demand in Italy

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