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Volume :25 Issue : 4 1997      Add To Cart                                                                    Download

The residential demand for water in Saudi Arabia: An Econometric study

Auther : Elmorsy E. Hegazi-Ali Z. Diabi

 This study attempts to estimate the main factors influencing the residential demand for water in the main cities in the Kingdom of Saudi Arabia. The level of prices, income, urbanization, consumer price index , the size of the market ,average temperature and rainfall  are included as explanatory variables. The ordinary and generalization least squares techniques fuller and parks are used to derive the relevant elasticity estimates. Overall , all the explanatory variables showed that they are significant and have the expected sign with the exception of temperature and rainfall. The lower price and income elastic ties suggest that the residential demand for water in Saudi Arabia is both price and income, inelastic, thus implying that water is a necessity good. Five simulation experiments were also performed to forecast the effects of alternative economic conditions on the level of residential demand for water up to the year 2000. implications: both administrative and demand management policies should be combined in a unified strategy a comprehensive metering system, as well as  an educational program to reduce waste.  

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