The Effects of Targeted Subsidieson Residential Urban Water Demand(Case Study:Tehran)

The rule of arid and semiarid climates in this vast country and increased water consumptiondue to the population growth and urbanization in recent years necessitate more accurateplanning and effective performance towards the allocation and protection of water resources. Inthis article, the function of Tehran urban water demand in regard to the effect of the subsidiesis discussed. To estimate this function, the monthly time series data (1393-1382) were used.Model based on the maximization of the utility function Stone - Gary and his approach toregression models and their accumulation relationships. Results showed no effect of targetedsubsidies in the amount of urban water demand. Similarly, water demand of Tehran has reversedrelation with water cost and the cost of other goods and direct relation with income. Urbanwater demand of the city is without price stretch with regard to the water cost and the cost ofother goods as well as a necessary commodity comparing to the revenue