Forecasting the residential water demand, balancing full water cost pricing and non-revenue water reduction policies

The paper examines the factors that determine the residential water demand level in the city of Kozani located in the NW part of Greece. Based on an 8-year (2005-12) detailed sample of residential water demand time panel data, the values of price and income water demand elasticity are estimated, and the influence of socio-economic and demographic characteristics, as well as climate conditions, on water use levels and trends are analysed. The overall objective is to estimate and record the overall response of consumption to the increased water price due to the full water cost principle adopted. © 2014 The Authors