Department of Economics
Managing a scarce resource in a growing Asian economy: Water usage in Hong Kong
An econometric analysis of Hong Kong's monthly per capita water usage for the 25-year period of April 1985 through March 2010 reveals that per capita usage is insensitive to price but dependent upon past usage, per capita income, weather, and seasonal factors, with rising income countering what would otherwise be a downward trend. Given Hong Kong's current inflationary environment and large government budget surplus, these findings affirm the Hong Kong Water Supplies Department's adopted strategy of total water management towards sustainable use of water resources, in lieu of either periodic service interruption or price increases as policy instruments. © 2012 Elsevier Inc..
Demand-side management, Hong Kong, Partial-adjustment regression model, Price elasticity, Water-usage elasticity
Source Publication Title
Journal of Asian Economics
Link to Publisher's Edition
Woo, Chi-Keung, Wing-Keung Wong, Ira Horowitz, and Hing-Lin Chan. "Managing a scarce resource in a growing Asian economy: Water usage in Hong Kong." Journal of Asian Economics 23.4 (2012): 374-382.