Water Demand Function of Residents of Delhi (India):An Empirical Analysis

Abstract

This study empirically determines the residential demand for water of the sampled households of selected localities of Delhi, thus estimating the demand function to derive price and income elasticities. The coefficients of price and income elasticities are taken as key policy variables in answering the question of "unreliability" (quantity and quality) of Delhi Jal Board's (DJB) water supply in terms of "coping costs" of meeting alternate domestic technology of procuring water by the sampled residents. The econometric estimation results reveal that residents are responsive to price changes for improved and reliable water supply from DJB.