Measuring Price Elasticities for Residential Water Demand with Limited Information

Henry Klaiber, V. Smith, Michael Kaminsky and Aaron Strong

No 18293, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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 using 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 fact 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 draught conditions. The application is the urban Phoenix metropolitan area.

JEL-codes: H42 Q25 (search for similar items in EconPapers)
Date: 2012-08
New Economics Papers: this item is included in nep-agr
Note: EEE
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Citations: View citations in EconPapers (2)

Published as H. Allen Klaiber & V. Kerry Smith & Michael Kaminsky & Aaron Strong, 2014. "Measuring Price Elasticities for Residential Water Demand with Limited Information," Land Economics, University of Wisconsin Press, vol. 90(1), pages 100-113.

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