An Empirical Analysis of Halifax Municipal Water Consumption

Recent empirical research for municipal water consumption has uncovered a variety of interesting growth patterns. This study examines municipal water usage over time for Halifax, Nova Scotia, the thirteenth largest metropolitan economy in the Canada. Results from a dynamic error correction modeling approach estimated using quarterly frequency data indicate that municipal water consumption reacts in statistically significant manners to changes in real price, per capita employment levels, and hot weather. Parameter estimates further indicate that any disequilibria in consumption tend to dissipate very quickly in Halifax. As in other regions, the number of utility customers is affected by demographic and labor market variables.