Pricing Sydney Water
Date
2007
Authors
Kompas, Thomas
Grafton, Quentin
Journal Title
Journal ISSN
Volume Title
Publisher
Blackwell Publishing Ltd
Abstract
The paper estimates an aggregate daily water demand for Sydney using rainfall, temperature, and price data from 2001 to 2005, and a dummy variable to account for reductions in demand following the introduction of water restrictions in October 2003. Analyses based on the estimated price elasticity, and also values one and two standard errors above and below this estimate, are used to model the effects of different pricing and water supply scenarios. The simulations indicate that without a fundamental change in water policy (pricing and supply) Sydney faces the possibility of critical water shortages in the short- to medium-term should there be a continuation of low rainfall events.
Description
Keywords
Keywords: computer simulation; estimation method; policy implementation; price dynamics; water economics; water supply; Australasia; Australia; New South Wales; Sydney Urban water; Water policy; Water pricing
Citation
Collections
Source
Australian Journal of Agricultural and Resource Economics
Type
Journal article
Book Title
Entity type
Access Statement
License Rights
Restricted until
2037-12-31
Downloads
File
Description