Table of Contents

Econometrics Informing Natural Resources Management

Econometrics Informing Natural Resources Management

Selected Empirical Analyses

New Horizons in Environmental Economics series

Edited by Phoebe Koundouri

This fascinating book outlines the fundamental principles and difficulties that characterise the challenging task of using econometrics to inform natural resource management policies, and illustrates them through a number of case studies from all over the world. The book offers a comprehensive overview of the broader picture of the state-of-the-art in econometrics as applied to environmental and natural resource management.

Chapter 5: Estimating urban water demands: a dynamic approach

María A. García-Valiñas

Subjects: economics and finance, econometrics, environmental economics, environment, environmental economics, management natural resources


María A. García-Valiñas INTRODUCTION Throughout the ages, water has been considered one of the most important natural resources in making the development of civilization possible, and its availability has conditioned the location of economic activity (Marshall, 1879; Gibbons, 1986). At the same time, water is a scarce good (Winpenny, 1994). Conflicts over this natural resource have caused competition among alternative uses or among regions. In those situations, supplies cannot meet demands, so it is necessary to design policies to allocate water efficiently. Since the 1970s, a tendency towards using demand-side policies may be observed, at the cost of increasing productive capacity to satisfy growing demands (Herrington, 1995). In this sense, the analysis of the users’ preferences constitutes a key element to be considered in water management processes. This study has focused on estimating water demand in an urban context. In spite of the fact that urban water demand is not the most important consumption use, it is the one that has most substantially increased (MMA, 2001). This rising trend is explained by several factors, such as population and income growth or changes in consumption habits. Thus, there is no doubt that urban demands are spreading and urban supply has priority over other uses. Specifically, the most relevant users in an urban context have been analysed. These are residential and commercial/industrial consumers supplied by the urban network. Studies that have simultaneously produced estimates for both types of users are still scarce (Williams and Suh, 1986;...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information