Alternate Price Specifications for Estimating Residential Water Demand with Fixed Fees.
Using a new model formulation and data from a sample of Colorado utilities, we investigated the price specification controversy (marginal price versus average revenue) when estimating residential water demand. The improved statistical fit using average revenue as the price variable was shown to be a...
| Publicado en: | Land Economics Vol. 80; no. 3; pp. 463 - 476 |
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| Autores principales: | , , |
| Formato: | Artículo |
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University of Wisconsin Press
August 2004
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510378041&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510378041 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00237639 LAE jtl: Land Economics issn: 00237639 maglogo: N pubinfo: dt: August 2004 vid: 80 iid: 3 pid: 249 pub: University of Wisconsin Press artinfo: ui: 510378041 10.2307/3654732 ppf: 463 ppct: 13 formats: fmt: – @attributes: type: T – @attributes: type: P size: 1009KB tig: atl: Alternate Price Specifications for Estimating Residential Water Demand with Fixed Fees. aug: au: Taylor, R. G. McKean, John R. Young, Robert A. su: Water utility rates Prices -- Mathematical models Water consumption Mathematical models Water supply Colorado sug: subj: Colorado Water utility rates Prices -- Mathematical models Water consumption Mathematical models Water supply ab: Using a new model formulation and data from a sample of Colorado utilities, we investigated the price specification controversy (marginal price versus average revenue) when estimating residential water demand. The improved statistical fit using average revenue as the price variable was shown to be an artifact of the unitary elastic identity created when monthly rate schedules contain a fixed fee. When the fixed fee was purged from the data, average price was not significant, but marginal price remained significant. In the preferred double-log marginal price model, estimated price elasticity was -0.3, and conservation programs had no significant effect on water use. (JEL Q25) Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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