Price elasticity of water demand considering scarcity and attitudes

Paola Garrone, Luca Grilli and Riccardo Marzano

Utilities Policy, 2019, vol. 59, issue C, -

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.

Keywords: Price elasticity; Water demand; Water scarcity; Environmental attitudes (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:59:y:2019:i:c:8

DOI: 10.1016/j.jup.2019.100927

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