Estimating the Water Demand Function of Pardis City

Document Type : Technical Note


1 Assist. Prof. of Agricultural Economic, Dept. of Agriculture, University of Zabol

2 M.Sc. Student of Agricultural Economic, Dept. of Agriculture, University of Zabol


Population growth, rising living standards, and rapid urbanization give rise to increasing water demands. One of the important challenges that policymakers face is the integrated view of water resources management by giving priority to water demand.   In this study, the water demand in Pardis City was estimated using the Stone-Geary Utility Function which was used to calculate price and income elasticity. Results showed that the range of price elasticity was 0.08 to 0.321 and that the income elasticity ranged from 0.165 to 0.289. Increasing water price had a greater effect on decreasing water consumption, particularly where water consumption was higher. Moreover, price elasticity in the summer was greater than in other seasons. Price elasticity was greater in higher consumption blocks  than in lower consumption ones. Results also indicated that domestic price elasticity was twice the non-domestic and that price elasticity was less than 1 in all cases.


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