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Drought management, service interruption, and water pricing: Evidence from Hong Kong
Author(s) -
Woo ChiKeung
Publication year - 1992
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/92wr01644
Subject(s) - per capita , consumption (sociology) , economic shortage , agricultural economics , nonmarket forces , water consumption , service (business) , water supply , business , water scarcity , non revenue water , water conservation , economics , water resource management , environmental science , water resources , geography , marketing , environmental engineering , agriculture , microeconomics , population , demography , philosophy , government (linguistics) , factor market , ecology , linguistics , archaeology , sociology , social science , biology
Supply shortage is a common problem faced by an urban water supply system. Nonmarket programs are often used to reduce consumption. Using monthly water consumption data collected for Hong Kong for the period 1973–1984, we estimate the effect of service interruption on per capita consumption. The findings show that this effect is statistically significant but relatively small in size. A price increase of 16–35% could have produced the same amount of consumption reduction.