Abstract
This study measures the price and income elasticity of demand for tap water, being essential for investment planning and other future business planning in Japan, where water demand is declining due to population decline. The estimation comes from panel data obtained from water utility companies between FY 2015 to FY 2020. The results show that the price elasticity of demand ranges between − 0.046 and − 0.041, while the income elasticity of demand ranges between 0.042 and 0.068. Both price and income elasticities were lower than in estimates from previous studies.
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Acknowledgements
This research is supported by JSPS KAKENHI (Grant Numbers JP20K01613, JP21K01473).
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Nakayama, N., Urakami, T. (2023). Estimation of Tap Water Demand in Japan: A Panel Data Analysis. In: Mizutani, F., Urakami, T., Nakamura, E. (eds) Current Issues in Public Utilities and Public Policy. Kobe University Monograph Series in Social Science Research. Springer, Singapore. https://doi.org/10.1007/978-981-19-7489-2_3
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DOI: https://doi.org/10.1007/978-981-19-7489-2_3
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