The impact of price on residential water demand: Some new insights


  • Charles W. Howe


Marginal price elasticities are reestimated from the Johns Hopkins Residential Water Use Project data of 1963–1965, utilizing more appropriate forms of household water demand functions derived from recent advances in consumer theory that account for the effects of a rate structure. Winter season elasticity is found to be a very low −0.06 compared to −0.23 in a 1967 study. For summer demands, price elasticities are found to be lower than earlier estimates, namely, −0.568 versus −0.860 for eastern U.S. areas and −0.427 versus −0.519 for western areas.