RESPONSE OF THE WATER DEMAND TO CHANGES IN THE PRICE: A STUDY BY TYPE OF CONSUMER IN NORTHERN OF SINALOA, MEXICO

摘要

The decreased level of water storage in the dams in northern Sinaloa, Mexico, and the increasing agricultural and residential demand requires urgently enacting policies promoting the efficient water distribution and use. To know the factors that explain the behavior of water demand in the residential, agricultural, livestock, industrial and commercial sectors in northern Sinaloa, a simultaneous equations model was estimated; it comprised ten equations and three identities. Analysis of the results indicate that water demand in these sectors responds inelastically to changes in the price, with elasticities of -0.087, -0.125, -0.065, -0.082 and —0.0054, respectively. The decrease of five percentage points in water demand in the last year, in the residential, agricultural and industrial sectors is possible with increments of 57.5, 40.0 and 61.0 % in the price.