Effectiveness of Residential Water-Use Restrictions under Varying Levels of Municipal Effort

Abstract

Given the current constraints in expanding public water capacity, water supply managers will increasingly be required to find ways to reduce demand during temporary water shortages. Consequently, water supply managers need sound estimates for the effectiveness of water reduction programs. This study expands the water demand literature by identifying the influence that enforcement and informational efforts have on the two most common forms of nonprice water-use restrictions. Residential water-use reductions increased with progressively higher levels of information and enforcement efforts, ranging from 0% to 7% for voluntary and 4% to 22% for mandatory restrictions. (JEL Q25)