Demand function estimate for residential water in Oman

Hemesiri Kotagama; Slim Zekri; Rahma Al Harthi; Houcine Boughanmi

doi:10.1080/07900627.2016.1238342

Demand function estimate for residential water in Oman

Hemesiri Kotagama, Slim Zekri^*, Rahma Al Harthi, Houcine Boughanmi

^*Corresponding author for this work

Natural Resource Economics

Research output: Contribution to journal › Article › peer-review

15 Citations (Scopus)

Abstract

Current subsidies to residential water users in Oman are estimated at USD 314 million/y. This study estimates the demand function for residential water in Muscat, Oman, for households living in villas. A two-stage least squares econometric model with lagged average water price was used with socio-economic variables. Price elasticity for residential water in Muscat was estimated as –2.10. This high price elasticity is explained by the large proportion of water used for outdoor purposes. This study indicates that it may be possible to manage water demand in Muscat through modifying the price of water and reforming subsidies for residential water.

Original language	English
Pages (from-to)	907-916
Number of pages	10
Journal	International Journal of Water Resources Development
Volume	33
Issue number	6
DOIs	https://doi.org/10.1080/07900627.2016.1238342
Publication status	Published - Nov 2 2017

Keywords

Oman
Water demand
outdoor uses
residential uses
water price elasticity

ASJC Scopus subject areas

Development
Water Science and Technology

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10.1080/07900627.2016.1238342

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title = "Demand function estimate for residential water in Oman",

abstract = "Current subsidies to residential water users in Oman are estimated at USD 314 million/y. This study estimates the demand function for residential water in Muscat, Oman, for households living in villas. A two-stage least squares econometric model with lagged average water price was used with socio-economic variables. Price elasticity for residential water in Muscat was estimated as –2.10. This high price elasticity is explained by the large proportion of water used for outdoor purposes. This study indicates that it may be possible to manage water demand in Muscat through modifying the price of water and reforming subsidies for residential water.",

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AU - Kotagama, Hemesiri

AU - Zekri, Slim

AU - Al Harthi, Rahma

AU - Boughanmi, Houcine

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Y1 - 2017/11/2

N2 - Current subsidies to residential water users in Oman are estimated at USD 314 million/y. This study estimates the demand function for residential water in Muscat, Oman, for households living in villas. A two-stage least squares econometric model with lagged average water price was used with socio-economic variables. Price elasticity for residential water in Muscat was estimated as –2.10. This high price elasticity is explained by the large proportion of water used for outdoor purposes. This study indicates that it may be possible to manage water demand in Muscat through modifying the price of water and reforming subsidies for residential water.

AB - Current subsidies to residential water users in Oman are estimated at USD 314 million/y. This study estimates the demand function for residential water in Muscat, Oman, for households living in villas. A two-stage least squares econometric model with lagged average water price was used with socio-economic variables. Price elasticity for residential water in Muscat was estimated as –2.10. This high price elasticity is explained by the large proportion of water used for outdoor purposes. This study indicates that it may be possible to manage water demand in Muscat through modifying the price of water and reforming subsidies for residential water.

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KW - Water demand

KW - outdoor uses

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KW - water price elasticity

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Demand function estimate for residential water in Oman

Abstract

Keywords

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