Exploring water consumption in Dhaka city using instrumental variables regression approaches

This article was published in Environmental Processes [©2012 Published by Oxford Journal] and the definite version is available at: http://doi.org/10.1093/heapol/czr059 The Article's website is at: http://heapol.oxfordjournals.org/content/27/6/477

Detalhes bibliográficos
Principais autores: Siddiquee, Muhammad Shahadat Hossain, Ahamed, Raihan
Outros Autores: BRAC Institute of Governance and Development
Formato: Journal Article
Idioma:en_US
Publicado em: Springer Link 2022
Assuntos:
Acesso em linha:http://hdl.handle.net/10361/16267
https://doi.org/10.1007/s40710-020-00462-3
id 10361-16267
record_format dspace
spelling 10361-162672022-03-27T05:53:16Z Exploring water consumption in Dhaka city using instrumental variables regression approaches Siddiquee, Muhammad Shahadat Hossain Ahamed, Raihan BRAC Institute of Governance and Development Dhaka city Income elasticity Policy implication Water consumption This article was published in Environmental Processes [©2012 Published by Oxford Journal] and the definite version is available at: http://doi.org/10.1093/heapol/czr059 The Article's website is at: http://heapol.oxfordjournals.org/content/27/6/477 This paper explores water consumption in Dhaka city for better understanding of its usage, and considers the implications of findings from distributive rationale. Using 459 household survey data collected by BRAC Institute of Governance and Development (BIGD), this study estimates income elasticities of water consumption after controlling the effects of other covariates including wealth-proxies, location, household size, water bill and spatial zones using the instrumental variable regression (IVREG) and instrumental variable quantile regression (IVQREG) approaches. The latter has an additive advantage over the former as the IVQREG provides a more accurate picture of the relationship of water consumption with the income throughout the entire water consumption distribution. Using the fixed pay variable as instrument, findings reveal the strong evidence that income is endogenous. The IVQREG results show that income elasticities are heterogeneous and vary significantly across the water quantiles, implying inequality in water consumption. It also provides strong systematic evidence as income elasticity of water consumption decreases with the increase in percentile. Significant spatial inequality in water consumption from IVREG approach disappears as we use IVQREG. This also strongly supports the systematic evidence obtained. Therefore, it is imperative to introduce different tariff structures among different water consumer groups for bringing equity in water consumption and revenue generation. However, Dhaka Water Supply & Sewerage Authority (DWASA) must ensure smart water meter before implementing such tariff structure as we face severe challenges while measuring residential water consumption. Published 2022-02-17T09:19:06Z 2022-02-17T09:19:06Z 2020 2020-09-24 Journal Article http://hdl.handle.net/10361/16267 https://doi.org/10.1007/s40710-020-00462-3 en_US https://link.springer.com/article/10.1007/s40710-020-00462-3 Environmental Processes Springer Link
institution Brac University
collection Institutional Repository
language en_US
topic Dhaka city
Income elasticity
Policy implication
Water consumption
spellingShingle Dhaka city
Income elasticity
Policy implication
Water consumption
Siddiquee, Muhammad Shahadat Hossain
Ahamed, Raihan
Exploring water consumption in Dhaka city using instrumental variables regression approaches
description This article was published in Environmental Processes [©2012 Published by Oxford Journal] and the definite version is available at: http://doi.org/10.1093/heapol/czr059 The Article's website is at: http://heapol.oxfordjournals.org/content/27/6/477
author2 BRAC Institute of Governance and Development
author_facet BRAC Institute of Governance and Development
Siddiquee, Muhammad Shahadat Hossain
Ahamed, Raihan
format Journal Article
author Siddiquee, Muhammad Shahadat Hossain
Ahamed, Raihan
author_sort Siddiquee, Muhammad Shahadat Hossain
title Exploring water consumption in Dhaka city using instrumental variables regression approaches
title_short Exploring water consumption in Dhaka city using instrumental variables regression approaches
title_full Exploring water consumption in Dhaka city using instrumental variables regression approaches
title_fullStr Exploring water consumption in Dhaka city using instrumental variables regression approaches
title_full_unstemmed Exploring water consumption in Dhaka city using instrumental variables regression approaches
title_sort exploring water consumption in dhaka city using instrumental variables regression approaches
publisher Springer Link
publishDate 2022
url http://hdl.handle.net/10361/16267
https://doi.org/10.1007/s40710-020-00462-3
work_keys_str_mv AT siddiqueemuhammadshahadathossain exploringwaterconsumptionindhakacityusinginstrumentalvariablesregressionapproaches
AT ahamedraihan exploringwaterconsumptionindhakacityusinginstrumentalvariablesregressionapproaches
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