María A. García-Valiñas

Estimation of residential water demand: a state-of-the-art review

This paper surveys the main issues in the literature on residential water demand. Several tariff types and their objectives are analyzed. Then, the main contributions to the literature on residential water demand estimation are reviewed, with particular attention to variables, specification model, data set, and the most common econometric problems. The paper concludes with comments on future trends and a summary of the contents of the study.

Is DEA useful in the regulation of water utilities? A dynamic efficiency evaluation (a dynamic efficiency evaluation of water utilities)

The discussion about public utilities efficiency and its management has become increasingly important in the last decades. We focus on the distribution of water, which is one of the most important natural resources (Marshall, 1879). This research shows the relationship between efficiency and institutional factors such as management system. For this purpose, we have data about some Spanish water utilities under different provision systems, during the period 1985 to 2000. Using Data Envelopment Analysis (DEA), we estimate potential cost savings in this context. We will extend the results obtained by Thanassoulis (2000a, b), in attempt to guide the regulation of this sector.

Measuring Water Affordability: A Proposal for Urban Centres in Developed Countries

Although water, at least for basic needs, should be accessible to everyone, many families have trouble paying their water bill. Assessments of water affordability inform the design of water tariffs aimed at ensuring universal access to water. In order to carry out such assessments, managers must have instruments available that accurately reflect the state of water affordability. In this article, a critique is presented of one of the indicators traditionally used to measure water affordability and a proposal of an alternative way of measuring water affordability is put forward. The empirical analysis is applied to data from 301 communities in southern Spain.

Is the Pricing of Urban Water Services Justifiably Perceived as Unequal among Spanish Cities

Decentralized decision making and lack of regulation lead to the existence of significant differences in the price of water for residential uses among Spanish cities. Why do these differences persist? Do they have to do with cost differentials or do they result from political and business interests? Can users perceive water tariffs as fair or is there unfairness among citizens when it comes to the access to water? We find that some of the differences are due to arbitrary decisions made by policy and business decision makers, so it is recommended that a regulation be adopted that sets criteria for guidance in tariff design, especially for lower levels of consumption within which water is considered a merit good.

Participation in Environmental Organizations: An Empirical Analysis

The literature on volunteering has strongly increased over the last few years. However, there is still a lack of substantial empirical evidence on the determinants of environmental participation. This empirical study analyses a cross-section of individuals using micro-data from the World Values Survey wave III (1995-1997), which covers 38 countries, to investigate this question. The results suggest that individuals’ active participation in environmental organizations is influenced not only by socio-demographic and socio-economic factors, but also by political attitudes. Furthermore, we observe regional differences. Interestingly, environmental participation seems to be a more important channel for action in developing countries, where weak and dysfunctional states make people pursue their goals through non-governmental sector activities. We also find that a higher level of perceived corruption promotes participation in environmental organizations, which shows that individuals take action when they feel that the government is corrupt.

Ownership and Performance in Water Services Revisited: Does Private Management Really Outperform Public?

Since the late 1970s, water services have been privatised in some developed countries in an attempt to improve performance. However, after three decades of privatisations the superiority of private management is being called into question and several cities are returning to public provision. In this paper we revisit the relationship between ownership and performance in urban water services management using directional distance functions, metafrontiers and Data Envelopment Analysis (DEA) techniques. The technical efficiency in the provision of water delivery services in a sample of Spanish municipalities is assessed at the level of the management of specific production factors; moreover, we discuss whether differences in efficiency between private and public decision units are due to either different capabilities of managers (managerial efficiency) or different technological restrictions (ownership efficiency). Our main finding is that private management is more efficient in the use of labour input, mainly because of the technological restrictions faced by public management units, such as legal and institutional restrictions. Conversely, private management appears to be less efficient at managing operational costs.

Adopting versus adapting: adoption of water-saving technology versus water conservation habits in Spain

Issues of water scarcity can be ameliorated through household adoption of water-saving technologies and by adaptation of consumption behaviour. In this paper the determinants of the adoption of water-efficient devices and of water-saving habits in Spain are analyzed using data from 27,000 households. This includes information on choices about self-reported conservation habits and decisions about the adoption of water-saving equipment. The findings show that educational campaigns have a strong positive effect on both decisions to undertake investments and decisions to adapt habits. These results also allow campaigns to be aimed at certain socio-economic groups identified in the econometric analysis.

Justifiability of Littering: An Empirical Investigation

This paper investigates the relationship between voluntary participation in environmental organisations and the justifiability of littering behaviour. Previous empirical work regarding determinants of littering and littering behaviour remains scarce, particularly in socio-economic analysis. We address these deficiencies, demonstrating a strong empirical link between environmental participation and reduced public littering in the European Values Survey (EVS) data for 30 Western and Eastern European countries. The results suggest that membership in environmental organisations is related to a stronger commitment to anti-littering behaviour, thereby supporting improved environmental quality.

Participation in Environmental Organizations

For decades, social scientists have searched for factors that shape pro-environmental behaviour. However, only a few studies have investigated the causes and consequences of participation in environmental organizations. This book fills the gap by analysing in detail the determinants of environmental participation and its consequences in different parts of the world. Benno Torgler, Maria A. Garcia-Valinas and Alison Macintyre seek the answer to several questions regarding who is working towards positive outcomes for our environment, what sort of social and institutional context will assist voluntary participation, what sort of attitudes are related to positive environmental behavior, and which countries are active on the intergovernmental stage. By focusing on voluntary participation in environmental organizations, we are able to determine the level of willingness to work towards a solution for environmental problems. This allows an insight into the motivations and attitudes of individuals and nations and how these factors can affect environmental cooperation. Participation in Environmental Organizations sheds light on who is liable to participate and will help to see whose priorities and values are forwarded through voluntary activities and to what extent voluntary participation can become representative. Thus, the book provides a unique examination of citizens’ willingness to participate in environmental organizations. The book will be of interest to Economics students and researchers alike who seek a deeper understanding of the theory and practice of environmental participation.

Nondiscretionary residential water use: the impact of habits and water-efficient technologies

Several studies published in the last few decades have demonstrated a low price-elasticity for residential water use. In particular, it has been shown that there is a quantity of water demanded that remains constant regardless of prices and other economic factors. In this research, we characterise residential water demand based on a Stone-Geary utility function. This specification is not only theory-compatible but can also explicitly model a minimum level of consumption not dependent on prices or income. This is described as minimum threshold or nondiscretionary water use. Additionally, the Stone-Geary framework is used to model the subsistence level of water consumption that is dependent on the temporal evolution of consumer habits and stock of physical capital. The main aim of this study is to analyse the impact of water-saving habits and water-efficient technologies on residential water demand, while additionally focusing attention on nondiscretionary uses. This is informed by an empirical application using data from a survey conducted among residents of Brisbane City Council, Australia. The results will be especially useful in the design of water tariffs and other water-saving policies.