Year: 2016, December. Volume: 13 - Issue: 2
Informing Water Policies with a Residential Water Demand Function: The Case of Serbia
Arnaud Reynaud, Denis Lanzanova, Miodrag B. Milovanovic, Ad de RooView this article (PDF)
Start page: 247 - End page: 266Keywords
Residential Water Demand, Price Elasticity, Water Policy, SerbiaAbstract
We provide the first estimate of a household water demand function in Serbia. The econometric model is estimated on a panel dataset made of the 25 Serbian districts (oblasts) covering years 2009 to 2012. Our estimates reveal a price elasticity of the Serbian household water demand varying between -0.2 and -0.9, depending on the model considered. We also demonstrate how the household water demand function can inform water policies in a prospective context. Using our estimates, we explore some possible future patterns of regional household water consumption in Serbia.