Abstract

Water demand and water price are analyzed from disclosed information related to domestic water supply. Even though the number of each family decreases, total water demand in many cities tends to decrease since 1994, when the demand reached the highest peak. Water demand per person per day differed by the scales of domestic water supplies, but this difference has become smaller. Water demand has not increased so much and has become diversified all over the country. On the other hand, the price analysis of water supply shows the price elasticity of water demand has become relatively inelastic and approached to zero. This shows that there should be limitation on managing water through water price. Therefore, while water pricing can be effective in some water supplies with high price elasticity during droughts, more diversified needs, such as water quality or uncertainty in risks, such as drought risks for global climate changes, should be considered for water resources management.

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