Privately-operated Water Utilities, Municipal Price Negotiation, and Estimation of Residential Water Demand : the Case of France
نویسندگان
چکیده
This paper addresses the issue of price negotiation between a municipality and a private water utility operator, and its implications for residential water demand estimation. Because negotiated price may depend on municipality’s specific characteristics, competing forms of price endogeneity have to be considered when using panel data. The impact of variables such as average income, housing and system features is investigated both on municipal consumption and price. We use efficient procedures to estimate a water demand equation on a panel of French municipalities. Estimated price and income elasticities are significant and close to previous, household-level studies.
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