Hemesiri Kotagama

Demand function estimate for residential water in Oman

Abstract Current subsidies to residential water users in Oman are estimated at USD 314 million/y. This study estimates the demand function for residential water in Muscat, Oman, for households living in villas. A two-stage least squares econometric model with lagged average water price was used with socio-economic variables. Price elasticity for residential water in Muscat was estimated as –2.10. This high price elasticity is explained by the large proportion of water used for outdoor purposes. This study indicates that it may be possible to manage water demand in Muscat through modifying the price of water and reforming subsidies for residential water.

Evaluation of the 2006–2008 Food Crisis on Household Welfare: The Case of the Sultanate of Oman

The objective of this paper is to evaluate the impact of high food prices during the 2006–2008 food crisis period on the welfare of households in the Sultanate of Oman. The welfare impacts of price changes are estimated using the Hicksian compensating variation (CV) methodology. The compensating variation was estimated for 4 different income household groups as well as two location groups (urban-rural). Results suggest that all household groups suffered welfare losses due to the food crisis. On average, Omani households need to be compensated about 10.3% of their income for the price increase they experienced during the 2006–2008 period. Rural households are more affected than urban households with a required compensation of 12.4% and 9.87%, respectively. In all cases most of the impact is felt on the first round where no consumption adjustment is made; the second round effect is comparatively small compared to the first-order effect. Total compensation required to compensate all households amounts to O.R. 266 M, that is, a 1.14% of GDP, whereas a compensation targeted to the low-income quartile amounts only to O.R. 26.7 M representing 0.1% of GDP.

Preferences and Intentions of Seafood Consumers in Oman: An Empirical Analysis

Abstract This study examines the influence of product attributes and socio-economic, demographic, cultural, psychological, and market-related factors on “preferences” and “intention” of seafood consumers in Oman using the classical economic choice theory, the theory of planned behavior (TPB), and their hybrid form. Primary data were collected using questionnaires administered through online and face-to-face survey. A total of 906 responses were received from the online (N = 778), hypermarkets (N = 93), and fish market (N = 35) sources. Descriptive and empirical analyses were performed to the survey data. Findings from the preference model suggest that nationality, habit, freshness (perceived as quality), taste, household size, income, and education are significantly influencing the purchasing frequency of seafood. While consumer attitudes and control beliefs (i.e., facilitating conditions) are significant in the intention model, the hybrid model identifies additional significant variables such as past and current consumption behavior that influence consumers’ intention of seafood purchase. The findings will enable seafood firms and the concerned authorities to formulate appropriate management and marketing strategies.

Empirical model for the condenser of the seawater greenhouse

ABSTRACT Seawater greenhouses (SWGH) utilize seawater or saline/brackish groundwater for cooling the microclimate and providing freshwater for irrigation through a humidification–dehumidification desalination process. The overall effectiveness of the SWGH greatly depends on the effectiveness of its condenser. The present study provides a good review on the available simulation models of the SWGH condenser and proposes a multiple linear regression model to predict the dehumidification rate of the condenser in the Oman SWGH. Four climatic and operational input variables were considered, including solar irradiance, inlet moist air temperature, inlet humidity ratio, and inlet air mass flow rate. The results showed that the model accurately predicts the dehumidification rate when compared against experimental values [a mean predictive error (PE) = −0.127 kg/h and root mean square error (RMSE) = 4.691 kg/h]. The model also outperformed some other model in several accuracy indicators such as PE, mean absolute predictive error, RMSE, R2, index of agreement and fractional variance.

Impact of Food Prices, Income and Income Distribution on Food Security in Oman

The impact of the surge in food price in 2008 and changes in income and its distribution on food security in the Sultanate of Oman is analyzed. The threshold of household food security was defined as access to a Nutritionally Adequate and Preferred Least Cost Diet (NAPLC). Changes in Food Security Head Count (F0: percentage of population unable to access NAPLC) and Food Security Gap (F1: a measure of amount of income that is required to bring all household that are food insecure to NAPLC) due to changes in food prices, income and its distribution were estimated using Software Platform for Automated Economic Analysis. With the surge in world food prices, Oman’s consumer price index of all food increased by 21.60 % in year 2008 compared to 2003. The average household income increased from 638.00 to 913.00 Omani Rial (OR) per month per household and the income distribution has significantly improved towards equality with the Gini-coefficient changing from 46.49 to 36.35 from year 2000 to 2008, respectively. F0 was 24.0 % with food prices, income and its distribution as prevailed in 2003. Due to the increased food prices in year 2008, even with increased income and more equal income distribution F0 had increased to 29.3 %, increasing food insecurity by 5.3 %. Had the food prices not increased the increased income and changed income distribution towards equality, F0 would have improved to 9.7 % by 2008 which is an improvement of food security by 14.3 % compared to F0 of 24.0 % in 2003. The 14.3 % improvement in food security would have been caused by almost equally through increased income (6.31 %) and improvements in the distribution of income (6.92 %) and due to interactive effect of increased income and improved distribution (1.09 %). F1 too was found to show similar changes in food security during 2003–2008 as F0. The average F1, amount of income required to bring all food insecure households to food secure threshold was estimated at 50.680 OR per month per household. The analysis indicates that food security in Oman would have significantly improved due to increased per capita income and improvements in the distribution of income had the food prices not surged in 2008. However the drastic increase in food prices in 2008 has instead increased food insecurity.