An empirical analysis of Halifax municipal water consumption

Abstract

Recent empirical research for municipal water consumption has uncovered a variety of interesting growth patterns. This study examines municipal water usage over time for Halifax, Nova Scotia, the thirteenth largest metropolitan economy in the Canada. Results from a dynamic error correction modeling approach estimated using quarterly frequency data indicate that municipal water consumption reacts in statistically significant manners to changes in real price, per capita employment levels, and hot weather. Parameter estimates further indicate that any disequilibria in consumption tend to dissipate very quickly in Halifax. As in other regions, the number of utility customers is affected by demographic and labor market variables. RésuméRecherches empiriques récentes ont trouvé une variété de tendances qui existent dans la consommation d'eau au niveau municipal. Cette étude analyse la consommation d'eau au fil du temps, à Halifax, en Nouvelle-Écosse, le treizième plus grande économie métropolitaine au Canada. Les résultats d'une modèle dynamique de correction d'erreurs, estimée avec des données trimestrielles indiquent que la consommation d'eau réagit de manières statistiquement significatives aux variations des prix réels, l'emploi, et le climat. Les paramètres estimés indiquent que tout déséquilibre de la consommation à Halifax est éliminé assez rapidement. Tout comme dans d'autres régions, le nombre de consommateurs d'eau est affecté par la démographie et par le marché du travail.

Short‐Term Forecasting Analysis for Municipal Water Demand

“…The data for this study were for municipal water consumption in El Paso, a fairly unique metropolitan economy located in a semi‐arid geographical region. The basic framework is applicable to other metropolitan economies that may receive higher volumes of precipitation and observe lower annual average temperatures (Fullerton et al 2013). Even though the model specifications for other regions may be similar to those shown in Table 4, the parameter magnitudes can differ substantially.…”

“…As mentioned previously, average price is calculated by dividing total revenue by water consumption. Because the latter is also the dependent variable in , it was necessary to test for endogeneity (Fullerton et al 2013). This was accomplished using an artificial regression test (Davidson & MacKinnon 1989).…”

Residential Water Demand in a Mexican Biosphere Reserve: Evidence of the Effects of Perceived Price

“…Similarly, in Germany, Schleich and Hillenbrand [41] estimated a static model under the Ordinary Least Squares (OLS) method and found an elasticity of −0.242. Fullerton et al [47] in the region of Halifax in Canada calculated an elasticity of −0.31 using cross-sectional data and an OLS estimator. Finally, with information from Tunisia organized as trimestral, non-seasonal panel data, Younes [48] used a Full Modified OLS method (FMOLS) in which blocks of low and high consumption were segmented, and through which elasticities between −0.08 and −0.46 were found.…”