Abstract

This paper analyses the effect of several economic, environmental and social determinants for the per capita demand for water in Libya. In this study, the econometric model based on E-views method, instrumental and ARDL model are applied. The cointegration analysis has shown a significant positive effect of temperature on water demand over the short and long term. Also, there is a positive relationship between rainfall and water demand in the long term and its less impact in the short term. There is a significant positive relationship between urban population and water demand. On the other hand, there is a significant negative effect of income on water demand. Therefore, water demand is inflexible to changes in income. The study demonstrated that there is a negative effect on water price in relation to water demand. The estimated long-term variable of water value is 220.98.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.