Investigation and analysis of demand for drinking water using the Geary- Stone utility function: a case study of Varamin area

Subject Areas : Agricultural Economics Research

fatemeh esmaelnia balagatabi ¹ , ahmad sarlak ² , hadi ghaffari ³

1 - - دانشجوی دکتری اقتصاد، واحد اراک، دانشگاه آزاد اسلامی، اراک، ایران.
2 - استادیار گروه اقتصاد، واحد اراک، دانشگاه آزاد اسلامی، اراک، ایران.
3 - دانشیار گروه اقتصاد دانشگاه پیام نور.

Received: 2018-02-03 Accepted : 2018-07-18 Published : 2018-09-23

Keywords: ARDL, Price Elasticity, Geary- Stone,

Abstract :

This paper, by estimating the domestic water demand function, determines the minimum consumption in the Varamin area. For this purpose, have been used annual time series data between 982-2015, Geary- Stone utility descriptive form and Auto Regressive Distributed Lag. Research variables include average household income, average temperature, price, water per capita consumption and consumer price index ratio. The tests for determining the causal and causal relationship between the time series of drinking water data were performed with Eviews 9 software. The results of income elasticity indicate the necessity of domestic water demand in Varamin.. Other results of the research have a positive and significant effect of the ratio of the consumer price index to the water price index on per capita water volume. Based on estimates, the minimum water consumption of every citizen of Varamin is 152 liters per day.

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