Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain)
This paper deals with the question of unobservable heterogeneity and problems of scale in urban water demand. For this purpose, the determinants of domestic water consumption and the elasticities were estimated using a hierarchical model. For our empirical analysis, a household level data panel from...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-12-01
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| Series: | Water |
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| Online Access: | https://www.mdpi.com/2073-4441/13/23/3400 |
| _version_ | 1797507139058532352 |
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| author | Mónica Maldonado-Devis Vicent Almenar-Llongo |
| author_facet | Mónica Maldonado-Devis Vicent Almenar-Llongo |
| author_sort | Mónica Maldonado-Devis |
| collection | DOAJ |
| description | This paper deals with the question of unobservable heterogeneity and problems of scale in urban water demand. For this purpose, the determinants of domestic water consumption and the elasticities were estimated using a hierarchical model. For our empirical analysis, a household level data panel from Valencia (Spain) between 2009 and 2011 was available. Households were assigned to the city neighbourhoods to which they belong, which allowed us to incorporate the intra-urban scale into the analysis. In the estimate, the average price paid by each household in each bimonthly period was used due to the current tariff structure in Valencia. Regarding our results, there were differences in the consumption between the different neighbourhoods that were not independent of the average price paid by households. We found that 27% of the variability in consumption was explained by differences in household behaviour. In addition, an average price-elasticity in Valencia for all periods of −1.868 was obtained as well as a range of elasticities for the different neighbourhoods between (−1.53 and −1.21). From the results obtained, it is possible to extract relevant information for local water managers in order to apply economic instruments, prices and taxes to urban water demand. |
| first_indexed | 2024-03-10T04:42:26Z |
| format | Article |
| id | doaj.art-5d3892bc54014c9e97f5ca4d27fc915c |
| institution | Directory Open Access Journal |
| issn | 2073-4441 |
| language | English |
| last_indexed | 2024-03-10T04:42:26Z |
| publishDate | 2021-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Water |
| spelling | doaj.art-5d3892bc54014c9e97f5ca4d27fc915c2023-11-23T03:14:59ZengMDPI AGWater2073-44412021-12-011323340010.3390/w13233400Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain)Mónica Maldonado-Devis0Vicent Almenar-Llongo1Department of Economic Analysis, EDEM Business School, 46024 València, SpainDepartment of Economics, Catholic University of Valencia, 46003 València, SpainThis paper deals with the question of unobservable heterogeneity and problems of scale in urban water demand. For this purpose, the determinants of domestic water consumption and the elasticities were estimated using a hierarchical model. For our empirical analysis, a household level data panel from Valencia (Spain) between 2009 and 2011 was available. Households were assigned to the city neighbourhoods to which they belong, which allowed us to incorporate the intra-urban scale into the analysis. In the estimate, the average price paid by each household in each bimonthly period was used due to the current tariff structure in Valencia. Regarding our results, there were differences in the consumption between the different neighbourhoods that were not independent of the average price paid by households. We found that 27% of the variability in consumption was explained by differences in household behaviour. In addition, an average price-elasticity in Valencia for all periods of −1.868 was obtained as well as a range of elasticities for the different neighbourhoods between (−1.53 and −1.21). From the results obtained, it is possible to extract relevant information for local water managers in order to apply economic instruments, prices and taxes to urban water demand.https://www.mdpi.com/2073-4441/13/23/3400urban waterdomestic water demandIRT tariffsmicrodata databasemultilevel analysishierarchical analysis |
| spellingShingle | Mónica Maldonado-Devis Vicent Almenar-Llongo Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain) Water urban water domestic water demand IRT tariffs microdata database multilevel analysis hierarchical analysis |
| title | Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain) |
| title_full | Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain) |
| title_fullStr | Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain) |
| title_full_unstemmed | Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain) |
| title_short | Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain) |
| title_sort | heterogeneity in domestic water demand an application of multilevel analysis to the city of valencia spain |
| topic | urban water domestic water demand IRT tariffs microdata database multilevel analysis hierarchical analysis |
| url | https://www.mdpi.com/2073-4441/13/23/3400 |
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