20 years

EJCE Year: 2016, December. Volume: 13 - Issue: 2

Informing Water Policies with a Residential Water Demand Function: The Case of Serbia

by Arnaud Reynaud ; Denis Lanzanova ; Miodrag B. Milovanovic ; Ad de Roo

Start page: 247 - End page: 266

Keywords: Residential Water Demand; Price Elasticity; Water Policy; Serbia

Jel code: C33; Q21; Q25

DOI: 10.25428/1824-2979/201602-247-266

Abstract:

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.

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