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- Title
Household Water Demand Seasonal Elasticities: A Stone-Geary Model under an Increasing Block Rate Structure.
- Authors
Clarke, Andrew J.; Colby, Bonnie G.; Thompson, Gary D.
- Abstract
Using household-level panel data from Tucson, Arizona, and a unique set of highly disaggregated control variables, we estimate residential demand for water via a Stone-Geary specification. The Stone-Geary functional form allows price elasticity of demand to vary with quantity consumed, price, and income and enables estimation of a threshold level of consumption below which demand is considered perfectly price inelastic. An encompassing test of consumer price response reveals evidence favoring a lagged average price specification rather than one using lagged marginal price. The estimated model also finds substantial seasonal variation in price elasticity and declining consumer price responsiveness.
- Subjects
ARIZONA; WATER consumption; HOUSING; WATER demand management; PRICING; CONSUMER price indexes
- Publication
Land Economics, 2017, Vol 93, Issue 4, p608
- ISSN
0023-7639
- Publication type
Article
- DOI
10.3368/le.93.4.608