Description: The main objective of this study is to analyze the demand for water in Denton. The data used for the study are obtained from the City of Denton Utilities Department, the Tax Appraisal District and government documents. The 121 households which have perfect ten years historical data of water consumption were selected to be the representatives of all households in Denton. The study reveals that the change in water consumption significantly relates to the change in marginal price. Furthermore, the weather variables also have strong effects on the water consumption, especially during summer. The coefficients of income and a "difference" variable are found to have the opposite sign but are not equal in magnitude. In fact, they should be equal in magnitude, but opposite in sign. While the estimated coefficients on all independent variables were highly significant statistically, the resulting coefficient on the house size variable was statistically insignificant in the model test. The results show that the difference variable is required in the model. It also had some effect on the water consumption. It is found that there is a small change in water consumption when the lot size is increased.
Date: December 1986
Creator: Sawangchareon, Dumrongchai