The Externality from Communal Metering of Residential Water: The Case of Tehran

Please enable javascript in your browser.

Taheri Hosseinabadi, Nastaran | 2017

277 Viewed

Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 55043 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Vesal, Mohammad; Rahmati, Mohammad Hossein
Abstract:
Many countries use a single water meter for multiple units within a building. This creates a cost externality where the cost of water consumed is spread over all units. Using administrative data from Tehran Water and Wastewater Co. for 2013 and 2014, we find an increase in the number of units on a communal meter on average increases per unit use by 0.4 percent. Estimation at different levels of units reveals that almost all communal meters have higher per unit water use. The results suggest that the externality is responsible for 2.7 percent of water consumption in our sample.
JEL classification: L9, Q25, Q50, Q58
Keywords:
Moral Hazard ; Water Consumption ; Consumer Behavior ; Residential Water Consumption ; Communal Metering ; Energy Dissipation ; Residential Complex

No TOC