Work

Estimating Household Water Demand and Affordability Under Intermittent Supply: An Econometric Analysis with a Water–Energy Nexus Perspective for Pimpri-Chinchwad, India

Year: 2025

Type: article

Abstract: Urban water utilities in rapidly developing regions face growing challenges in ensuring continuous supply. Intermittent public water supply leads to unreliable and inequitable access, compelling households to adopt energy-intensive coping strategies. This creates a nexus between water and energy demand at the household level. Few econometric analyses of household water demand have explicitly addressed this demand-side nexus in developing regions. Using survey data from the city of Pimpri-Chinchwad, India, where intermittent water supply is prevalent, we analyze household expenditures related to water access and estimate a piped water demand function with a Discrete-Continuous Choice model. We find that electricity expenditures for accessing water exceed water bills for approximately one-third of households. Including these costs in affordability calculations reveals hidden financial burdens, particularly for middle-income households. Water and electricity prices, income, and household size significantly influence water demand, with an income elasticity of 0.177 and water price elasticities ranging from 0 to −0.876. The cross-price elasticity of −0.097 indicates weak complementarity between electricity and piped water, suggesting electricity price changes do affect water use but are insufficient to drive substantial behavioral shifts. Targeted price increases in high-consumption blocks are more effective at curbing overuse, while simultaneous increases in water and electricity prices may heighten household vulnerability. These findings highlight the need for integrated, nexus-aware demand management strategies, particularly in regions with intermittent supply.

Source: Water

DOI: 10.3390/w17192917

Authors: Yuanzao Zhu, Christian Klassert, Bernd Klauer, Erik Gawel

Institutions: Helmholtz Centre for Environmental Research, Leipzig University

Language: English

Topic: Water resources management and optimization

Subfield: Ocean Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Clean water and sanitation, Affordable and clean energy, No poverty, Reduced inequalities

Open Access status: gold

Estimated APC paid: $3,137