期刊名称：Discussion Paper Series / Department of Economics, Monash University
出版年度：2010
卷号：1
出版社：Monash University
摘要：This paper formulates a demand model for residential water in Sri Lanka using the
Stone-Geary functional form. This functional form has two main advantages when
compared with Cobb-Douglas: non-constant price elasticities and; it considers water
consumption as two components – a fixed and a residual. These two components
allow us to estimate the threshold below which water consumption is non-responsive
to price changes. Our findings show that the portion of water use insensitive to price
changes in Sri Lanka is between 0.64 and 1.06 per capita per month. This is below
estimates for developed countries indicating that reducing water consumption via
price instruments may be more successful in developing countries. Price elasticity
ranges from -0.11 to -0.14 and the income elasticity varies from 0.11 to 0.14. These
estimates are similar to those for developed countries suggesting policy makers
should not rely solely on price instruments to reduce water consumption.Stone-Geary, water demand, water pricing, block pricing, Sri Lanka
关键词：Stone-Geary, water demand, water pricing, block pricing, Sri Lanka
