Full Description

Two models of residential water demand were run with data from three water utilities in the Tucson, Arizona metropolitan area to estimate the response of water use to variations in price, household income, and a variety of socioeconomic and climatic variables. All three utilities examined imposed availability-of-service charges, and the largest utility used increasing-block rates and seasonal rates. Because of disagreement in the literature about the proper specification of price under these conditions, demand models were estimated using both the traditional average-price variable and the marginal price plus rate premium. Several principles of conservation pricing and other aspects of demand management for water utilities are discussed. The presented research strongly suggests that price, income, and socio-economic variables significantly influence residential water-use decisions and that publicity about the need for conservation has a minor impact. Includes 9 references, tables, figures.

Product Details

Edition: Vol. 81 - No. 3 Published: 03/01/1989 Number of Pages: 7 File Size: 1 file , 2.4 MB