Full Citation

Title: Do Increasing Block Rate Water Budgets Reduce Residential Water Demand? A Case Study in Southern California

Citation Type: Working Paper

Publication Year: 2013

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Abstract: This study investigates the effect of introducing a revenue-neutral increasing block-rate water budget price structure on residential water demand. We estimate that demand was reduced by at least 18 percent, although the reduction was achieved gradually over more than three years. As intermediate steps the study derives estimates of price and income elasticities that rely only on longitudinal variability. We investigate how different subpopulations responded to the pricing change and find evidence that marginal, rather than average, prices may be driving consumption. Additionally, we derive alternative revenue-neutral rate structures that might have been implemented, and assess the estimates demand effects of those rate structures.

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Authors: Schwabe, Kurt A.; Baerenklau, Kenneth A.; Dinar, Ariel

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Publication Number: 01-0913

Institution: University of California, Riverside

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Publisher Location: Riverside, CA

Data Collections: IPUMS NHGIS

Topics: Other

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