Get access

Residential Demand for Water in the Chicago Metropolitan Area

Authors

  • Taro Mieno,

    1. Respectively, Graduate Research Assistant and Professor, Department of Agricultural & Consumer Economics, University of Illinois, 1301 W. Gregory Drive, Urbana, Illinois 61801.
    Search for more papers by this author
  • John B. Braden

    1. Respectively, Graduate Research Assistant and Professor, Department of Agricultural & Consumer Economics, University of Illinois, 1301 W. Gregory Drive, Urbana, Illinois 61801.
    Search for more papers by this author

  • Paper No. JAWRA-10-0043-P of the Journal of the American Water Resources Association (JAWRA). Discussions are open until six months from print publication.

(E-Mail/Mieno: tmieno2@illinois.edu).

Abstract

Mieno, Taro and John B. Braden, 2011. Residential Demand for Water in the Chicago Metropolitan Area. Journal of the American Water Resources Association (JAWRA) 47(4):713-723. DOI: 10.1111/j.1752-1688.2011.00536.x

Abstract:  This paper provides the first contemporary analysis of residential water demand in humid Northeastern Illinois, in the vicinity of Chicago, and explores seasonal and income-based differentials in the responsiveness of water use to water prices. Using a panel of system-level data for eight water systems and controlling for seasons, weather, incomes, and community characteristics, the analysis yields low estimates of price elasticity of demand for water in line with other studies. Furthermore, price response is greater in summer and less in higher income communities. We suggest that use of seasonal pricing can help mitigate equity issues arising from differential income elasticities while taking advantage of the greater price responsiveness of summertime water use.

Ancillary