{"title":"Modeling the impact of price and usage efficiency on domestic water demand in Saudi Arabia","authors":"Muhammad Javid","doi":"10.1016/j.jup.2025.101971","DOIUrl":null,"url":null,"abstract":"<div><div>The main objective of this paper is twofold. First, it seeks to identify the key drivers of domestic water demand in the Kingdom of Saudi Arabia (KSA) by estimating two sets of water demand models covering 1994 to 2023. The first model relates water demand to water price, income, and population, while the second model adds water use efficiency (WUE) as an additional explanatory variable to assess its impact on future domestic water demand. Second, the paper projects Saudi Arabia's domestic water demand through 2050 based on the estimates derived from both models. The estimation results show that all coefficients are significant and align with theoretical expectations. The estimated price elasticities of water demand are −0.17 and −0.20 for Models 1 and 2, respectively. The estimated elasticity of WUE is −0.39. Projections based on Model 1 suggest that total domestic water demand will rise from 3.6 billion m<sup>3</sup>/year in 2023 to approximately 8.14 billion m<sup>3</sup>/year by 2050. The results indicate that domestic water demand in KSA could be reduced by 32 % through improvements in WUE and by 4 % through water price reforms. These findings underscore the significant role of WUE enhancements in managing domestic water demand in KSA.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"96 ","pages":"Article 101971"},"PeriodicalIF":3.8000,"publicationDate":"2025-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Utilities Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0957178725000864","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
The main objective of this paper is twofold. First, it seeks to identify the key drivers of domestic water demand in the Kingdom of Saudi Arabia (KSA) by estimating two sets of water demand models covering 1994 to 2023. The first model relates water demand to water price, income, and population, while the second model adds water use efficiency (WUE) as an additional explanatory variable to assess its impact on future domestic water demand. Second, the paper projects Saudi Arabia's domestic water demand through 2050 based on the estimates derived from both models. The estimation results show that all coefficients are significant and align with theoretical expectations. The estimated price elasticities of water demand are −0.17 and −0.20 for Models 1 and 2, respectively. The estimated elasticity of WUE is −0.39. Projections based on Model 1 suggest that total domestic water demand will rise from 3.6 billion m3/year in 2023 to approximately 8.14 billion m3/year by 2050. The results indicate that domestic water demand in KSA could be reduced by 32 % through improvements in WUE and by 4 % through water price reforms. These findings underscore the significant role of WUE enhancements in managing domestic water demand in KSA.
期刊介绍:
Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services.
Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.