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Price elasticity of water demand considering scarcity and attitudes

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  • Garrone, Paola
  • Grilli, Luca
  • Marzano, Riccardo

Abstract

The effectiveness of price as a water conservation measure remains an open empirical issue and relevant policy question. We conduct a meta-regression analysis to single out location and community traits that boost or depress the price elasticity of residential demand. Our results reveal that water scarcity exerts significant influence on price elasticity. More specifically, if water scarcity is severe, household responsiveness to prices decreases, though this effect is attenuated in environmentally concerned communities.

Suggested Citation

  • Garrone, Paola & Grilli, Luca & Marzano, Riccardo, 2019. "Price elasticity of water demand considering scarcity and attitudes," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    • Handle: RePEc:eee:juipol:v:59:y:2019:i:c:8
    DOI: 10.1016/j.jup.2019.100927
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    Cited by:

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    4. Sowby, Robert B. & South, Andrew J., 2023. "Innovative water rates as a policy tool for drought response: Two case studies from Utah, USA," Utilities Policy, Elsevier, vol. 82(C).

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