Research

Zuraini Anang · Jaharudin Padli · Noorhaslinda Kulub Abdul Rashid · Roseliza Mat Alipiah · Haslina Musa ·Jurnal Ekonomi Malaysia ·2019

Water becomes a crucial issue in the 21st century because of rising population and increasing development. Water is needed for agriculture, energy production, recreation, and manufacturing. This study investigates the impact of economic indicators and climate change on water demand for 13 states in Malaysia. Using annual data from 2007 to 2015, the panel data approach is used to assess the impact of these determinants on water demand. The dependent variable is water resources, and independent variables comprise real income, total consumption per capita, agriculture sector, population density and climate change. The real income is a nonlinear equation and indicates a threshold in economic development because the welfare of residents and industry will decline after the optimum point due to the shortage of water resources. The results indicate that total consumption per capita, agriculture, and population density have a positive impact on water demand. The agriculture sector exerts high demand on water resources. The climate change is a correct sign that represents an increase in demand for water resources during dry periods and leading to water stress. This fnding is useful for improving the prediction of climate change to managing the water resources sustainably, particularly in the agriculture sector

Mahirah Kamaludin · Kuna Sandran · A.A. Azlina ·Jurnal Ekonomi Malaysia ·2018

Water supply is an expensive investment and it is inevitable that the people have to prepare themselves for a universal hike in water prices in order to secure uninterrupted supply in the future. Inexpensive water prices cause the consumers to take water supply for granted and hence, lack of water conservation initiatives prevail. Sufficient funding is needed to implement various programs to improve water services. The costs of these programs should not be incurred by the water companies which are already burdened by the small revenue resulting from low water price. As the collection of revenue is inadequate to cover operating costs, the services rendered to the consumers are often unsatisfactory and the operational efficiency is below par. The last review of water tariff in Terengganu was done in the last two decades. Hence, with the increase in income within the last two decades, a study is needed to assess consumers’ willingness to pay for improved water services. This study employs Double Bounded Contingent Valuation Method (CVM) to estimate households’ willingness to pay (WTP) for improvements in water services in Terengganu. Monetary benefits of improved water services for the consumers in Terengganu were determined based on the value of WTP. The findings of this study will be used in identifying the frequent problems and issues faced by the government owned water supplier in Terengganu. Efficient water prices will facilitate efforts in delivering better water services and promoting greater efficiency in the financial and operational management of operators to attain financial sustainability