RT Journal Article
SR Electronic
T1 Measuring Price Elasticities for Residential Water Demand with Limited Information
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 100
OP 113
DO 10.3368/le.90.1.100
VO 90
IS 1
A1 H. Allen Klaiber
A1 V. Kerry Smith
A1 Michael Kaminsky
A1 Aaron Strong
YR 2014
UL http://le.uwpress.org/content/90/1/100.abstract
AB This paper exploits the seasonal and annual changes in marginal prices for water to estimate the price elasticity of demand by residential households for water. It uses the changes in distributions of water used at the census block group levels in response to changes in marginal prices of water for matched months across years. This strategy reduces the interaction effects of outdoor use and demographic factors in determining responsiveness to price. By comparing years that vary in overall water availability, the framework can recover measures of how responses to price vary with season and drought conditions. The application is the urban Phoenix metropolitan area. (JEL H42, Q25)