Privately operated water utilities, municipal price negotiation, and estimation of residential water demand: The case of France

Citation
C. Nauges et A. Thomas, Privately operated water utilities, municipal price negotiation, and estimation of residential water demand: The case of France, LAND ECON, 76(1), 2000, pp. 68-85
Citations number
29
Language
INGLESE
art.tipo
Article
Categorie Soggetti
EnvirnmentalStudies Geografy & Development
Journal title
LAND ECONOMICS
ISSN journal
0023-7639 → ACNP
Volume
76
Issue
1
Year of publication
2000
Pages
68 - 85
Database
ISI
SICI code
0023-7639(200002)76:1<68:POWUMP>2.0.ZU;2-S
Abstract
This paper addresses the issue of price negotiation between a municipality and a private water utility operator, and its implications for residential water demand estimation. We rise appropriate econometric procedures to esti mate a water demand equation on a panel of French municipalities. We find e vidence that negotiated water price depends on municipality's characteristi cs, causing endogeneity of price in the demand equation. The impact of aver age household income,, housing, and system features such as metering is inv estigated both on municipal consumption and price. Estimated price and inco me elasticities are significant and close to previous household level studi es. (JEL Q25).