Authors

1 Master of Agricultural Economics and Master of Agricultural Planning and Economics Research Institute

2 Master of Economics and Instructor, Faculty of Economics, Shahid Bahonar University of Kerman

Abstract

Demand side policy effectiveness on potable water consumption in Kerman is investigated by estimating demand function using 1998-99 panel data. Results show that water demand is price inelastic (-0.15 through -0.22). Income elasticity of demand (0.11-0.025) indicates that water is an essential good in the budget of households in Kerman Additionally economies of scale (household members) shows that one member increase to household will decrease. 0.72 cubic meter per capita water consumption per month. The results show that the size of the residence has a positive significant effect but the use of sprinkling doesn't have any significant effect on per capita water consumption.