Household Water Demand Estimation
This working paper addresses the issues: 1) whether there is a simultaneous equations problem when estimating demand for water with multipart rate schedules and, if there is one, what techniques should be used to correct for it; and 2) whether average or marginal price is the relevant measure in estimating the demand function. In addition, the issue is raised of sample selection bias in a rate schedule, combined with a fixed charge for consumption below the level where a block rate tariff per unit consumed. This study uses results from a sample of 685 families from 34 localities in rural Argentina (taken in 1987) and presents an analysis of the results with different estimation techniques.
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Format: | Working Papers biblioteca |
Language: | English |
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Inter-American Development Bank
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Subjects: | Water Consumption, Public Utility, Rural Development, water conservation;water consumption;water supply;water resources;environment, |
Online Access: | http://dx.doi.org/10.18235/0011616 https://publications.iadb.org/en/household-water-demand-estimation |
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Summary: | This working paper addresses the issues: 1) whether there is a simultaneous equations problem when estimating demand for water with multipart rate schedules and, if there is one, what techniques should be used to correct for it; and 2) whether average or marginal price is the relevant measure in estimating the demand function. In addition, the issue is raised of sample selection bias in a rate schedule, combined with a fixed charge for consumption below the level where a block rate tariff per unit consumed. This study uses results from a sample of 685 families from 34 localities in rural Argentina (taken in 1987) and presents an analysis of the results with different estimation techniques. |
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