Demand function estimate for residential water in Oman

Research output: Contribution to journalArticle

3 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 languageEnglish
Pages (from-to)1-10
Number of pages10
JournalInternational Journal of Water Resources Development
DOIs
Publication statusAccepted/In press - Oct 7 2016

Fingerprint

Oman
water
demand
price elasticity
elasticity
subsidy
econometrics
water demand
price

Keywords

  • Oman
  • outdoor uses
  • residential uses
  • Water demand
  • water price elasticity

ASJC Scopus subject areas

  • Development
  • Water Science and Technology

Cite this

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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.",
keywords = "Oman, outdoor uses, residential uses, Water demand, water price elasticity",
author = "Hemesiri Kotagama and Slim Zekri and {Al Harthi}, Rahma and Houcine Boughanmi",
year = "2016",
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doi = "10.1080/07900627.2016.1238342",
language = "English",
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journal = "International Journal of Water Resources Development",
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T1 - Demand function estimate for residential water in Oman

AU - Kotagama, Hemesiri

AU - Zekri, Slim

AU - Al Harthi, Rahma

AU - Boughanmi, Houcine

PY - 2016/10/7

Y1 - 2016/10/7

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.

KW - Oman

KW - outdoor uses

KW - residential uses

KW - Water demand

KW - water price elasticity

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