The Distributional Effects of Water Quantity Management Strategies: A Spatial Analysis

Joshua Duke, Robert W. Ehemann and John Mackenzie
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Robert W. Ehemann: University of Deleware
John Mackenzie: University of Deleware

The Review of Regional Studies, 2002, vol. 32, issue 1, 19-35

Abstract: The distributional effects of three water policies are compared using spatial data from New Castle County, Delaware. The analysis reveals that a 591 percent increase in the marginal price of water achieves the same 25 percent reduction in consumption as rationing and mandatory restrictions. However, the distributional effects of pricing are distinct. Under rationing, households with low consumption must forgo essential uses. Mandatory restrictions are more equitable, shifting the conservation burden to residents living on larger parcels. With a threshold to protect essential consumption, the pricing policy places the burden of conservation on households with higher incomes and larger parcel sizes.

Date: 2002
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