Version 1
: Received: 11 August 2016 / Approved: 11 August 2016 / Online: 11 August 2016 (10:48:10 CEST)
Version 2
: Received: 11 August 2016 / Approved: 12 August 2016 / Online: 12 August 2016 (09:29:43 CEST)
Almendarez-Hernández, M.A.; Avilés Polanco, G.; Hernández Trejo, V.; Ortega-Rubio, A.; Beltrán Morales, L.F. Residential Water Demand in a Mexican Biosphere Reserve: Evidence of the Effects of Perceived Price. Water2016, 8, 428.
Almendarez-Hernández, M.A.; Avilés Polanco, G.; Hernández Trejo, V.; Ortega-Rubio, A.; Beltrán Morales, L.F. Residential Water Demand in a Mexican Biosphere Reserve: Evidence of the Effects of Perceived Price. Water 2016, 8, 428.
Almendarez-Hernández, M.A.; Avilés Polanco, G.; Hernández Trejo, V.; Ortega-Rubio, A.; Beltrán Morales, L.F. Residential Water Demand in a Mexican Biosphere Reserve: Evidence of the Effects of Perceived Price. Water2016, 8, 428.
Almendarez-Hernández, M.A.; Avilés Polanco, G.; Hernández Trejo, V.; Ortega-Rubio, A.; Beltrán Morales, L.F. Residential Water Demand in a Mexican Biosphere Reserve: Evidence of the Effects of Perceived Price. Water 2016, 8, 428.
Abstract
The purpose of thispaper is to provideempirical evidenceto water policy-makersand the evaluation ofthe application of economicinstrumentssuch as priceand otherfactorsaffecting demand, they contribute toimproved decision-making around water managementintheBiosphere ReserveEl Vizcaino, Mexico. Itwas estimateda dynamic function with average price specification and other price perception specification. The findings show thatconsumers react toaverage price perceived andnot themarginalprice;long-run price elasticity is higherthan short-run and both elasticities are inelastic. Elasticitiesinelasticwithrising pricesgenerate highincomestoimprove waterplanning,supply qualityand expandservice coverage. The results suggestthat the level ofknowledge of userson theprice is keyto takeinto accountrestructuringrates in a scenario wherethe consumer hasasymmetric information and themselves achieve goals of economic efficiency,socialequity and environmental sustainability.
Keywords
lagged consumption; dynamic function; water management; average price; marginal price
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.