Residential Water Demand in a Mexican Biosphere Reserve: Evidence of the Effects of Perceived Price

Water

Marco Antonio Almendarez-Hernández¹  Alfredo Ortega-Rubio¹  Luis Felipe Beltrán Morales¹  Gerzaín Avilés Polanco²  Víctor Hernández Trejo² 

[1] Centro de Investigaciones Biológicas del Noroeste, Instituto Politecnico Nacional 195, Colonia Playa Palo de Santa Rita, 23096 La Paz, B.C.S., Mexico;Department of Economics, Universidad Autónoma de Baja California Sur, Carretera al Sur Km 5.5, 23080 La Paz, B.C.S., Mexico;

关键词: lagged consumption;    dynamic function;    water management;    average price;    marginal price;   

DOI  :  10.3390/w8100428

来源: DOAJ

【 摘 要 】

The purpose of this paper is to provide empirical evidence for policy-makers of water management, evaluate the applicability of economic variables such as price and other factors that affect demand, and determine the impact thereof on decision-making surrounding water management in the El Vizcaino Biosphere Reserve in Mexico. We estimated a dynamic function with an average price specification, as well as price perception specification. Findings demonstrated that consumers tend to react to perceived average price but not to the marginal price. Furthermore, long-term price elasticity was found to be higher than short-term elasticity, and both elasticities were found to be inelastic. Inelastic elasticities, coupled with rising prices, generate substantial revenues with which to improve water planning and supply quality and to expand service coverage. The results suggest that users’ level of knowledge surrounding price is a key factor to take into account when restructuring rates, especially in situations where consumers do not readily possess the necessary information about their rate structure and usage within a given billing period. Furthermore, the results can help water management policy-makers to achieve goals of economic efficiency, social equity, and environmental sustainability.

【 授权许可】

Unknown