Open AccessFactores explicativos de la demanda municipal de agua y efectos en el bienestar de la política tarifaria. Una aplicación a la cuenca del Segura
Author(s) -
Miguel Ángel Tobarra-González
Publication year - 2020
Publication title -
estudios de economía aplicada
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.123
H-Index - 6
eISSN - 1697-5731
pISSN - 1133-3197
DOI - 10.25115/eea.v31i2.3341
Subject(s) - welfare economics , euros , water consumption , economics , per capita , price elasticity of demand , population , consumption (sociology) , economy , agricultural economics , water resource management , environmental science , humanities , microeconomics , demography , sociology , philosophy , social science
In this article urban water demand is analyzed using data of 42 municipalities located in the Segura River Basin for the period 2000-2006. The econometric approach shows that price, income and population are the most important variables for explaining urban water demand changes. Water tariffs achieve moderate savings due to the price inelastic behavior of demand (-0,4). This is typical of necessary goods without substitutes. Calculus made shows that the increment in tariffs, necessary to reduce 10% consumption, means a consumer surplus reduction between 8 and 9,5 euros per person (and year). There is also a minimum of water consumption in homes, 84 litres per capita per day that cannot be affected by tariffs. Income and population increments have deeper impact than price for explaining changes in urban water demand. Predictions about these variables are major for a proper hydraulic management.