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Effects of Energy and Food Supply on Domestic Water Demand - Elasticity Estimation Using Panel Data Model -

  • Crisisonomy
  • Abbr : KRCEM
  • 2018, 14(4), pp.41~53
  • DOI : 10.14251/crisisonomy.2018.14.4.41
  • Publisher : Crisis and Emergency Management: Theory and Praxis
  • Research Area : Social Science > Public Policy > Public Policy in general
  • Received : January 31, 2018
  • Accepted : April 18, 2018
  • Published : April 30, 2018

Oh, Hee-Kyun 1 Lee, Hee-chan 1

1세종대학교

Accredited

ABSTRACT

The aim of this study was to obtain basic information related to WEF (water-energy-food) Nexus for water shortage crisis management by analyzing the influence of energy and food supply on domestic water demand. This study set up a panel model reflecting regional heterogeneity, using the data from 16 metropolitan cities in Korea during the past 17 years (1998 to 2014). The model included multiple variables such as water nexus factors (energy consumption and food crop production), climate factors (precipitation and temperature), and economic factors (GRDP and water rate). The FGLS (feasible generalized least squares) model was selected as the optimal option as a result of the model fitness test. The model results indicate that energy consumption, food crop production, GRDP and water rate all showed significant influence on water demand, but precipitation and temperature were not effective. The elasticity of water consumption was 0.084 for energy consumption, 0.412 for food crops, 0.318 for GDRP, and -0.199 for water rate.

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