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JOURNAL OF STRATEGIC INNOVATION AND SUSTAINABILITY
An Estimation of the Elasticity Demand for Tap Water
Author(s): Russ Kashian, Jeff Heinrich, Brandon Narveson, Eric Cramer
Citation: Russ Kashian, Jeff Heinrich, Brandon Narveson, Eric Cramer, (2012) "An Estimation of the Elasticity Demand for Tap Water," Journal of Strategic Innovation and Sustainability, Vol. 7, Iss. 3, p. 100 - 112
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper examines the elasticity of the demand for water as well as the household characteristics that
influence their demand for water. Two empirical models are estimated employing a panel dataset from
South Milwaukee, Wisconsin. The initial model employs a probit model to determine the characteristics
that might classify a home as a “high user”. The second model estimates a simple OLS model for
estimating elasticity. The findings are twofold, first consumer elasticity demand is dependent on where
along the demand curve that consumer is. Second, household characteristics are an important
determinant in their demand for water.
