Work detail

ncome Elasticity of Water Demand: A Meta-Analysis

Author: Mgr. Tomáš Vlach
Year: 2016 - summer
Leaders: doc. PhDr. Tomáš Havránek Ph.D.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 75
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/118748/
Abstract: If policymakers address water scarcity with the demand-oriented approach, the income elasticity
of water demand is of pivotal importance. Its estimates, however, differ considerably. We collect
307 estimates of the income elasticity of water demand reported in 62 studies, codify 31 variables
describing the estimation design, and employ Bayesian model averaging to address model uncertainty
inherent to any meta-analysis. The studies were published between 1972 and 2015, which means
that this meta-analysis covers a longer period of time than two previous meta-analyses on this
topic combined. Our results suggest that income elasticity estimates for developed countries do
not significantly differ from income elasticity estimates for developing countries and that different
estimation techniques do not systematically produce different values of the income elasticity of water
demand. We find evidence of publication selection bias in the literature on the income elasticity of
water demand with the use of both graphical and regression analysis. We correct the estimates for
publication selection bias and estimate the true effect beyond bias, which reaches approximately 0.2.
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