Estimating urban residential water demand: Effects of price structure, conservation, and education
Article first published online: 9 JUL 2010
Copyright 1992 by the American Geophysical Union.
Water Resources Research
Volume 28, Issue 3, pages 609–615, March 1992
How to Cite
1992), Estimating urban residential water demand: Effects of price structure, conservation, and education, Water Resour. Res., 28(3), 609–615, doi:10.1029/91WR02852.(
- Issue published online: 9 JUL 2010
- Article first published online: 9 JUL 2010
- Manuscript Accepted: 16 OCT 1991
- Manuscript Received: 15 APR 1991
Water demand equations are estimated using the most current American Water Works Association (1984) survey of 430 (of 600 largest) U.S. utilities. The data set was augmented by monthly rainfall and temperature data from the National Oceanic and Atmospheric Administration's climatological data. Demographic data were obtained from the U.S. Department of Commerce (1988). Besides the usual endogeneity problems involving block price structures this paper also examines the possible endogeneity of conservation and education programs. Three types of models were used: a marginal price model, an average price model, and Shin's (1985) price perception model. The results generally show that price elasticity is higher in the South and the West. Conservation does not appear to reduce water use, but public education appears to have reduced water usage in the West. The Shin (1985) tests in this study indicate that consumers react more to average than marginal prices in all regions.