Full Citation

Title: Can Allocation-Based Water Rates Promote Conservation and Increase Welfare? A California Case Study

Citation Type: Journal Article

Publication Year: 2019

ISBN:

ISSN:

DOI: 10.1142/S2382624X18500145

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PMID:

Abstract: An allocation-based rate (ABR) is a special type of increasing block rate (IBR) price structure that is receiving increased attention from urban water suppliers in places like California where population growth and climate change continue to increase water scarcity. Previous work by Baerenklau et al. [Baerenklau, KA, KA Schwabe and A Dinar (2014a). Allocation-based water pricing promotes conservation while keeping user costs low. Agricultural and Resource Economics Update, 17(6), 1–14; Baerenklau, KA, KA Schwabe and A Dinar (2014b). The residential water demand effect of increasing block rate water budgets. Land Economics, 90(4), 683–699.] investigates the conservation potential of ABR and finds that consumption under ABR was 10–15% below that of a comparable uniform rate structure for a southern California case study. This paper extends that work by using the discrete–continuous choice framework to estimate household-level welfare effects of ABR for the same dataset. We find that despite the observed dec...

Url: https://www.worldscientific.com/doi/abs/10.1142/S2382624X18500145

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Authors: Baerenklau, Kenneth A.; Pérez-Urdiales, María

Periodical (Full): Water Economics and Policy

Issue: 2

Volume: 5

Pages: 1850014

Data Collections: IPUMS USA

Topics: Natural Resource Management

Countries: United States